Wall Street opens higher as AI stocks regain some more ground and oil prices ease

U.S. stock markets opened higher Tuesday as artificial-intelligence stocks regained ground after last week’s sharp sell-off. The S&P 500 rose 0.6%, pulling back within 2% of its all-time high from a week earlier, while the Dow Jones Industrial Average gained 291 points (0.6%) and the Nasdaq climbed 0.8%. Companies tied to AI infrastructure, including Micron Technology (up 2.5%), led the rebound, though the sector remains volatile after a 2% S&P 500 drop last Friday—the worst since October. Oil prices provided additional support, falling 2.4% to $92.00 per barrel after briefly peaking above $98 the prior day. The decline followed speculation about a potential U.S.-Iran deal to reopen the Strait of Hormuz, easing concerns over disrupted Persian Gulf crude shipments. Lower fuel costs benefited airlines, with United Airlines rising 2.7% and Delta Air Lines up 2.6%, though carriers have raised fares to offset $6 billion in April jet fuel expenses—a 78% increase from the previous year. Higher oil prices have also contributed to broader inflation pressures, pushing bond yields upward. The 10-year Treasury yield dipped slightly to 4.53% but remains above its pre-war level of 3.97%. Wall Street traders anticipate the Federal Reserve will raise interest rates later this year to combat inflation, despite a strong U.S. job market, which could weigh on stock valuations. Internationally, markets showed mixed movement, with European indexes ticking higher after Asian gains. South Korea’s Kospi surged 8.2%, nearly reversing Monday’s 8.3% plunge, as tech giants like SK Hynix and Samsung Electronics recovered. Upcoming U.S. inflation reports—due Wednesday for consumer prices and Thursday for wholesale prices—will further shape investor sentiment amid ongoing economic uncertainty.