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NEW YORK \u2014 Most of the U.S. stock market rose Tuesday following strong profit reports from Equifax, Hasbro and other companies, while oil prices eased back after nearing their highest levels since the war with Iran began.<\/p>\n
The S&P 500 added 0.3 per cent. The Dow Jones Industrial Average rallied 529 points, or one per cent, while more swings for stocks in the artificial-intelligence industry sent the Nasdaq composite to a modest loss of less than 0.1 per cent. <\/p>\n
Stock prices tend to follow the path of corporate profits over the long term, and several companies delivered results for the latest quarter that were better than analysts expected. Big expectations for growth generally are what have allowed the U.S. stock market to hit records recently despite worries about high inflation, higher interest rates and other challenges weighing on Wall Street.<\/p>\n
Equifax rallied 11.3 per cent for one of the market\u2019s biggest gains after reporting a bigger profit for the summer than analysts expected, despite high mortgage rates slowing some parts of its business.<\/p>\n
Hasbro climbed 11.2 per cent after the toy company said its \u201cMagic: The Gathering\u201d game made more than US$600 million in revenue during a quarter for the first time. 3M rose 5.8 per cent after the company behind Ace bandages and Scotch-Brite sponges likewise reported a stronger-than-expected profit, even as shoppers broadly feel discouraged by high inflation. <\/p>\n
Stocks got a lift after the price for a barrel of Brent crude erased an early gain to fall 0.7 per cent to US$108.79. Earlier in the morning, it got near US$112 and approached its highest price since the war with Iran began in late February.<\/p>\n
The drop in oil prices will relieve some of the pressure on inflation, if it lasts. Brent\u2019s price has been yo-yoing between US$97 and US$112 per barrel this month on uncertainty about when the energy industry will return to normal.<\/p>\n
For now, airlines and other companies with big fuel bills enjoyed the benefit of Tuesday\u2019s drop. American Airlines rallied 3.7 per cent, and United Airlines flew 2.3 per cent higher. <\/p>\n
Another winner was Braze, a customer engagement platform. Its stock soared 51.7 per cent to US$45.57 after Salesforce said it would buy the company for US$47.50 in cash for each share.<\/p>\n
Keeping the market in check was General Motors, which sank 6.8 per cent despite reporting a bigger profit than analysts expected. It also announced a program to send up to US$20 billion to investors by buying back its stock. <\/p>\n
The pressure is on companies to deliver bigger profits not only now, but also in the future. GM gave a forecasted range for profit over the full year of 2026 whose midpoint fell short of analysts\u2019 expectations.<\/p>\n
AI stocks, meanwhile, continued to swirl. They\u2019ve been at the center of the market\u2019s recent uneasiness, as euphoria around the technology\u2019s boom gives way to worries that high interest rates in the bond market will slow the borrowing that\u2019s allowed companies to buy so many AI chips. Last week was the U.S. stock market\u2019s worst since June because of weakness for AI-related companies.<\/p>\n
CoreWeave has been particularly shaky. It initially fell more than 6 per cent at the start of Tuesday\u2019s trading, only to swing to a gain of 5 per cent before pulling back to a rise of 1.7 per cent. <\/p>\n
Such reversals are nothing new for the company, which has borrowed money to buy AI chips that it rents out to customers over the cloud. A day earlier, it careened between a gain of 7 per cent in the morning and a loss of 3.5 per cent in the afternoon following last week\u2019s tumble of roughly 25 per cent.<\/p>\n
All told, the S&P 500 rose 21.84 points to 7,712.57. The Dow Jones Industrial Average rallied 529.85 to 52,495.88, and the Nasdaq composite slipped 6.07 to 26,424.82.<\/p>\n
Tuesday\u2019s struggles for AI stocks began in Asia, where a South Korean AI company, Elice, confronted a rough welcome to the stock market. Its stock dropped 32 per cent in its first day of trading in Seoul, and South Korea\u2019s Kospi index fell 3.7 per cent overall.<\/p>\n
In other stock markets abroad, indexes in Europe dipped after paring bigger losses from earlier in the day. The CAC 40 in Paris slipped 0.4 per cent, and the FTSE 100 in London fell 0.3 per cent. <\/p>\n
A day earlier, European indexes fell sharply following violent protests that could ultimately force governments on the continent to increase their spending to ease voters\u2019 anger. That in turn could put more pressure on their bond markets, which are already strained because of worries about already heavy debt loads for governments. <\/p>\n
___<\/p>\n
Stan Choe, The Associated Press<\/p>\n
AP Business Writers Yuri Kageyama and Michelle Chapman contributed to this report.<\/p>\n
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