Oil Prices Rise Again as Wall Street Holds Near Record Highs/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks hovered near record highs Thursday even as oil prices climbed following renewed tensions involving Iran and the United States. Strong corporate earnings from companies like Dollar Tree and Snowflake helped support Wall Street. Investors continue balancing geopolitical risks, inflation concerns and strong profit growth across major sectors.
Wall Street Markets Quick Looks
- S&P 500 remains near record highs.
- Oil prices rise after Iran tensions escalate.
- Brent crude climbs above $96 per barrel.
- Dollar Tree stock surges 15%.
- Snowflake jumps more than 33%.
- Airline and cruise stocks decline.
- Treasury yields remain elevated.
- Inflation concerns continue pressuring consumers.
- AI-driven profits support technology shares.
- Strait of Hormuz fears remain central to markets.
Deep Look
Wall Street Holds Near Record Levels
U.S. stocks stayed close to historic highs Thursday despite renewed instability in the Middle East and another rise in oil prices.
The:
- S&P 500 slipped 0.1%
- Dow Jones Industrial Average fell 219 points
- Nasdaq Composite declined 0.2%
Even with modest losses, all three indexes remained near record territory after recent gains fueled by strong corporate earnings.
Analysts say investors are increasingly focusing on company profits rather than daily swings in geopolitical tensions.
Oil Prices Rise After New Iran Tensions
Oil prices rebounded Thursday following reports of another escalation involving Iran and the United States.
U.S. Central Command said Kuwait intercepted missiles launched from Iran late Wednesday.
The incident followed earlier U.S. “defensive” strikes targeting:
- Iranian missile launch sites
- Mine-laying vessels
- Drone operations near the Strait of Hormuz
As tensions rose, Brent crude oil climbed 2% to $96.13 per barrel.
Markets remain highly sensitive to developments surrounding the Strait of Hormuz, through which roughly one-fifth of globally traded oil normally passes.
Travel Stocks Pull Back on Higher Fuel Costs
Companies heavily exposed to fuel prices fell as oil rebounded.
Among the declines:
- Norwegian Cruise Line Holdings dropped 1%
- Delta Air Lines fell 1.1%
Travel-related stocks had rallied earlier in the week on hopes the U.S. and Iran could reach an agreement to reopen oil shipping routes.
Those hopes remain uncertain as ceasefire violations continue threatening negotiations.
Corporate Profits Continue Driving Markets
Despite geopolitical instability and inflation concerns, strong earnings reports continue supporting U.S. stocks.
Several companies posted stronger-than-expected quarterly profits Thursday.
Dollar Tree Surges
Dollar Tree jumped 15% after reporting stronger profits and issuing an upbeat full-year forecast.
CEO Mike Creedon said improved store conditions helped offset rising tariff-related costs.
Kohl’s and Hormel Also Rally
Kohl’s surged 21.3% after results exceeded investor expectations.
Hormel Foods climbed 8.1% thanks to strong sales of:
- Jennie-O turkey products
- Spam exports
Snowflake Benefits From AI Boom
Snowflake soared 33.3% after reporting strong growth tied to artificial intelligence demand.
The company said AI remains a major driver of its business growth.
Meanwhile, Salesforce fell 2% despite solid earnings, as investors continue evaluating competition from newer AI-focused software rivals.
Inflation and Savings Concerns Persist
Investors are also monitoring inflation data and weakening household finances.
A report Thursday showed inflation accelerated again in April, though largely within economists’ expectations.
The data also revealed that:
- The U.S. personal savings rate dropped to 2.6%
- The lowest level in four years
Gary Schlossberg of Wells Fargo Investment Institute warned the trend highlights “financial pressure on lower- and middle-income families.”
Higher inflation continues impacting:
- Food prices
- Energy bills
- Housing costs
- Consumer spending power
Bond Yields Remain Elevated
Treasury yields were mixed Thursday after the inflation report.
The yield on the 10-year Treasury remained around 4.48%.
Higher yields continue worrying investors because they can:
- Slow economic growth
- Increase borrowing costs
- Hurt housing demand
- Reduce corporate investment
Analysts are especially watching whether higher financing costs could eventually slow spending on artificial intelligence infrastructure projects that have helped power much of the market’s recent rally.
Global Markets Mixed
Markets overseas traded unevenly.
Most European and Asian indexes declined, while:
- Hong Kong’s Hang Seng fell 1.3%
- Other Asian markets posted smaller losses
Investors worldwide remain focused on:
- Iran ceasefire negotiations
- Inflation trends
- Oil market stability
- Central bank policy decisions
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