Stocks Rise While Oil Prices Whipsaw on Iran War Fears/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Oil prices swung sharply as uncertainty around the Iran war disrupted global energy markets, briefly nearing peak levels before pulling back. U.S. stocks remained steady near record highs, supported by strong corporate earnings, especially from major tech firms. Investors continue balancing strong profits against concerns about inflation, AI spending, and global instability.
Oil Prices Stocks Market Quick Looks
- Oil prices surged and fell quickly amid Iran war uncertainty
- Brent crude briefly approached recent highs above $114 per barrel
- U.S. stocks hovered near record levels despite volatility
- S&P 500 edged up slightly while Dow rose over 400 points
- Alphabet surged after strong earnings tied to AI growth
- Meta and Microsoft fell due to rising spending concerns
- Strong corporate profits continue supporting stock market gains
- Bond yields eased as oil prices pulled back
Deep Look
Oil Prices Swing Amid Iran War Concerns
NEW YORK — Oil prices showed extreme volatility Thursday, surging toward their highest levels since the Iran war began before quickly retreating, highlighting ongoing uncertainty in global energy markets.
In thinner trading, June contracts spiked above $126 before easing.
Even after the pullback, oil remains significantly higher than its pre-war level of roughly $70 per barrel, reflecting continued disruption caused by the conflict.
The swings are largely driven by fears that the closure of the Strait of Hormuz and a U.S. naval blockade could keep oil supplies constrained for an extended period.
Stocks Stay Resilient Near Record Highs
Despite turbulence in energy markets, U.S. stocks remained remarkably steady.
The S&P 500 rose slightly and stayed just below its all-time high, while the Dow Jones Industrial Average gained more than 400 points.
The Nasdaq composite slipped modestly.
The stability on Wall Street reflects continued confidence in corporate earnings, which have generally exceeded analysts’ expectations for the start of 2026.
Strong profits have helped offset concerns about inflation, rising oil prices, and broader economic uncertainty.
Tech Earnings Lead Market Gains
Technology companies played a major role in supporting the market.
Alphabet led gains, jumping 5.8% after reporting profits that far exceeded expectations.
CEO Sundar Pichai highlighted that investments in artificial intelligence are driving growth across the company’s business.
Other companies also posted strong results.
Caterpillar, Eli Lilly, O’Reilly Automotive, and Royal Caribbean each rose more than 6% after delivering better-than-expected earnings.
These results reinforce a key driver of stock performance: over time, share prices tend to follow corporate profit growth.
AI Spending Raises Investor Concerns
Not all earnings reports were met with enthusiasm.
Meta Platforms dropped nearly 10% despite beating profit expectations, as investors focused on its plans to significantly increase spending on data centers and AI infrastructure.
The company projected capital spending between $125 billion and $145 billion.
Microsoft also fell after raising its own spending forecasts, even as analysts noted positive trends in its cloud business.
Amazon slipped slightly after exceeding expectations as well.
These reactions highlight growing concerns among investors about whether massive investments in artificial intelligence will ultimately deliver enough returns.
Bond Yields Ease as Markets Adjust
In the bond market, Treasury yields declined slightly as oil prices pulled back from their overnight highs.
The yield on the 10-year Treasury fell to around 4.38% from 4.42% the previous day.
Economic reports released Thursday added to the mixed outlook.
Data showed that U.S. economic growth was slower than expected in the first quarter, while inflation increased roughly in line with forecasts.
Another report indicated fewer workers applied for unemployment benefits, suggesting layoffs remain limited even as companies announce job cuts.
Global Markets Show Mixed Performance
Stock markets outside the United States delivered mixed results.
London’s FTSE 100 rose sharply after the Bank of England held interest rates steady.
Germany’s DAX also gained, while France’s CAC 40 declined slightly following a similar rate decision by the European Central Bank.
In Asia, Hong Kong’s Hang Seng index fell, while Chinese markets posted modest gains despite signs of slowing factory activity.
Central banks around the world — including the Federal Reserve, Bank of England, European Central Bank, and Bank of Japan — have largely paused interest rate changes as they assess inflation and economic conditions.
Investors Face Uncertain Path Ahead
The combination of volatile oil prices, strong corporate earnings, and uncertain economic signals leaves investors navigating a complex environment.
On one hand, companies are delivering solid profits, particularly in technology and AI-driven sectors.
On the other, geopolitical risks and rising energy costs continue to threaten economic stability.
For now, Wall Street is holding near record levels — but much will depend on how the Iran conflict evolves and whether energy markets stabilize in the coming months.
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