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Financial Markets 05/26 09:35
NEW YORK (AP) -- The U.S. stock market is rising Tuesday as it catches up
with others around the world that climbed the day before, when President Donald
Trump said negotiations were "proceeding nicely" with Iran on ending their war.
The S&P 500 rose 0.5% after trading resumed following Monday's holiday. The
Dow Jones Industrial Average was up 53 points, or 0.1%, as of 9:35 a.m. Eastern
time, and the Nasdaq composite was 0.8% higher. All three are near their
all-time highs.
The gains came even though fighting continued in the region, and the U.S.
military said it carried out "self-defense" strikes in southern Iran, including
on missile launch sites and boats placing mines. Markets have rallied in the
past on hopes for a coming end to the war with Iran, only to see the conflict
drag on.
The price for a barrel of Brent crude, the international standard, rose 3%
to $96.25, but that reclaimed only a bit of its 7.1% plunge from Monday. The
price for a barrel of U.S crude oil, meanwhile, fell 3.8% to $92.99 after
resuming trading following the Memorial Day holiday.
Oil prices have been at the center of the action for financial markets since
the United States and Israel attacked Iran in late February. The ensuing war
has closed the Strait of Hormuz to most oil tankers, keeping crude pent up in
the Persian Gulf instead of flowing to customers worldwide. That in turn has
driven up oil's price and sent a wave of painful inflation around the world.
Hopes for a deal to end the war helped lift stocks of companies with big
fuel bills. United Airlines rose 4.5%, and cruise operator Carnival steamed
3.7% higher.
The lower oil prices also helped pull yields lower in the U.S. bond market,
which eased the pressure on all kinds of investments. The yield on the 10-year
Treasury fell 4.48% from 4.56% late Friday.
It's a respite following gains for yields in bond markets worldwide
recently, which threatened to slow economies and undercut prices for stocks and
all kinds of other investments. High yields have already forced the average
long-term U.S. mortgage rate to its most expensive level since last summer, and
they could curtail companies' borrowing to build the AI data centers that have
supported the U.S. economy's growth recently.
Big technology stocks also continued their big runs, driven by hopes for
continued profits because of the boom around artificial-intelligence
technology. Micron Technology jumped 11.2% and was the strongest force lifting
the S&P 500 after analysts at UBS led by Timothy Arcuri raised their 12-month
price target for the stock to $1,625 from $535.
That helped offset a drop of 8.2% for AutoZone, which reported slightly
weaker revenue for the latest quarter than analysts expected, though its profit
topped expectations. CEO Phil Daniele said performance for the retailer's
stores in Brazil and Mexico was below its plan.
Most big U.S. companies have been reporting both profit and revenue for the
start of 2026 above what analysts expected. The strong performances have helped
vault U.S. stocks to records, even with all the uncertainty around oil prices
and the war with Iran.
In stock markets abroad, indexes were mixed. South Korea's Kospi jumped 2.5%
as it also caught up with other markets following a Monday closure for a
holiday.
London's FTSE 100 added 0.7% even though British petroleum giant BP fell
4.7% there. It ousted its chairman over what it called serious concerns related
to "important governance standards, oversight and conduct."
Japan's Nikkei 225 fell 0.2% and fell back from its all-time high set the
day before.
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AP Business Writer Elaine Kurtenbach contributed to this report.
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