NEW YORK (AP) – Hour-by-hour swings in oil prices continue to roil financial markets, and U.S. stocks were flat on Thursday following the latest reversal.
The S&P 500 rose 0.2% and came close to its highest set last week. The Dow Jones Industrial Average added 276 points, or 0.6%, while the Nasdaq composite rose 0.1%.
All three indices have erased early declines and gained strength following the recent U-turn in oil prices. Brent crude oil briefly gained above $109 a barrel in the morning, threatening to worsen inflation that is already the world’s highest, before quickly erasing all its gains in midday trading and falling 2.3% to $102.58.
Oil prices are rising due to uncertainty about how long the war with Iran will keep the Strait of Hormuz closed. The shutdown prevented oil tankers from leaving the Persian Gulf to deliver crude to customers around the world, driving up the price of oil.
As oil prices fell on Thursday, so did pressure on Wall Street that had been building since the bond market.
The yield had risen so much that it threatened the global economy and drove down the prices of stocks, bitcoin and all kinds of investments. They have already pushed the US long-term mortgage rate to its most expensive level since last summer, and could reduce corporate borrowing to build AI data centers that have underpinned recent US economic growth.
The 10-year Treasury yield was briefly near 4.63% in the morning before falling to 4.55% following the midday shift in oil prices. That was down from 4.57% late Wednesday and from 4.67% the day before.
Some of the biggest beneficiaries of lower yields would be very small companies, many of which need to borrow money to grow. The Russell 2000 index of the smallest US stocks rose 0.9%, more than other markets.
Shares of companies with heavy fuel bills also rose due to the increase in oil prices. Southwest Airlines gained 2.7%, while American Airlines soared 4.9%.
Ralph Lauren jumped 13.9% after reporting stronger profit and revenue in the latest quarter than analysts expected.
They helped offset a 1.8% drop in Nvidia, one of the most influential stocks on Wall Street because of its size.
The chip company reported stronger profit and revenue for the latest quarter than analysts expected, while forecasting revenue for the current quarter that obliterated analysts’ estimates. “The construction of AI factories – the largest infrastructure expansion in human history – is growing at an incredible pace,” said CEO Jensen Huang.
