NEW YORK (AP) \u2014 Hour-to-hour swings for oil prices keep jerking financial markets around, and U.S. stocks wavered Thursday following the latest reversal. <\/p>\n
The S&P 500 rose 0.2 per cent and inched closer to its all-time high set last week. The Dow Jones Industrial Average added 276 points, or 0.6 per cent, and the Nasdaq composite climbed 0.1 per cent.<\/p>\n
All three indexes erased early drops and gained strength following the latest U-turn for oil prices. Brent crude oil briefly got above US$109 per barrel in the morning, threatening to worsen the world\u2019s already high inflation, before quickly erasing all its gains in midday trading and falling 2.3 per cent to settle at US$102.58. <\/p>\n
Oil prices are yo-yoing because of uncertainty about how long the war with Iran\u00a0 will keep the Strait of Hormuz shut. The closure has prevented oil tankers from exiting the Persian Gulf to deliver crude to customers worldwide, driving up oil\u2019s price.<\/p>\n
As oil prices eased Thursday, so did pressure on Wall Street that\u2019s been building from the bond market. <\/p>\n
Yields had climbed so high\u00a0 that they threatened to slow economies worldwide and undercut prices for stocks, bitcoin and all kinds of other investments. They\u2019ve already forced the average long-term U.S. mortgage rate to its most expensive level since last summer, and they could curtail companies\u2019 borrowing to build the AI data centers that have supported the U.S. economy\u2019s growth\u00a0 recently.<\/p>\n
The yield on the 10-year Treasury briefly got near 4.63 per cent in the morning before falling back to 4.55 per cent following the midday turnaround for oil prices. That\u2019s down from 4.57 per cent late Wednesday and from 4.67 per cent the day before.<\/p>\n
Some of the biggest beneficiaries of lower yields can be the smallest companies, many of which need to borrow money to grow. The Russell 2000 index of the smallest U.S. stocks climbed 0.9 per cent, far more than the rest of the market. <\/p>\n
Stocks of companies with big fuel bills also rose because of the easing of oil prices. Southwest Airlines gained 2.7 per cent, and American Airlines flew 4.9 per cent higher.<\/p>\n
Ralph Lauren jumped 13.9 per cent after reporting stronger profit and revenue for the latest quarter than analysts expected. <\/p>\n
They helped offset a 1.8 per cent drop for Nvidia, which is one of Wall Street\u2019s most influential stocks because of its immense size. <\/p>\n
The chip company reported stronger profit and revenue for the latest quarter than analysts expected, while also forecasting revenue for the current quarter that cleared analysts\u2019 estimates. \u201cThe buildout of AI factories \u2014 the largest infrastructure expansion in human history \u2014 is accelerating at extraordinary speed,\u201d CEO Jensen Huang said. <\/p>\n
But such performances and such talk have become routine, and Nvidia\u2019s stock swiveled between losses and gains before falling. <\/p>\n
Some analysts said the weakness may have been because investors were locking in profits after Nvidia\u2019s stock had soared nearly 70 per cent over the prior year, more than double the S&P 500\u2019s 27 per cent jump. The broad AI industry is also getting criticism for becoming too expensive, as well as too circular\u00a0 as Nvidia has bought ownership stakes in companies that use its own chips that drive Nvidia\u2019s revenue.<\/p>\n
Walmart also fell, 7.3 per cent, following its profit report. The retailer delivered another quarter of impressive revenue\u00a0 but offered up weaker forecasts for upcoming profit than analysts expected.<\/p>\n
Walmart has resonated with Americans who have grown increasingly cautious about where they spend their money with inflation\u00a0 taking a bigger bite out of paychecks.<\/p>\n
All told, the S&P 500 rose 12.75 points to 7,445.72. The Dow Jones Industrial Average climbed 276.31 points to 50,285.66, and the Nasdaq composite gained 22.74 to 26,293.10.<\/p>\n
A preliminary report on U.S. business activity suggested that companies are also feeling the bite of higher inflation. <\/p>\n
A flash survey from S&P Global said growth in activity for U.S. services businesses unexpectedly slowed a tad, though growth was better than forecast for U.S manufacturers. <\/p>\n
\u201cThe damaging economic impact from the war in the Middle East is becoming increasingly evident in the business surveys,\u201d according to Chris Williamson, chief business economist at S&P Global Market Intelligence.<\/p>\n
A separate report, meanwhile, gave the latest signal that the U.S. job market remains in better shape than economists expected. The number of U.S. workers applying for unemployment benefits last week unexpectedly declined in an indication of fewer layoffs. <\/p>\n
In stock markets abroad, indexes were mixed in Europe following bigger moves in Asia. <\/p>\n
South Korea\u2019s Kospi Kospi jumped 8.4 per cent thanks to strength for technology stocks. Samsung Electronics leaped 8.5 per cent after its labor union and management reached an agreement late Wednesday that averted a strike. SK Hynix, a chip company partnering with Nvidia, leaped 11.2 per cent. <\/p>\n
Tokyo\u2019s Nikkei 225 jumped 3.1 per cent, while indexes fell 1 per cent in Hong Kong and 2 per cent in Shanghai. <\/p>\n
___<\/p>\n
Stan Choe, The Associated Press. AP Business Writers Matt Ott and Elaine Kurtenbach contributed.<\/p>\n","protected":false},"excerpt":{"rendered":"NEW YORK (AP) \u2014 Hour-to-hour swings for oil prices keep jerking financial markets around, and U.S. stocks wavered…\n","protected":false},"author":2,"featured_media":685420,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[45,49,48,77],"class_list":["post-685419","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-ca","tag-canada","tag-international"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/685419","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=685419"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/685419\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/685420"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=685419"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=685419"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=685419"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}