Wall Street Rises With Oil and Earnings in Focus/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks rose Friday as markets reopened after the Juneteenth holiday, buoyed by strong corporate earnings from Kroger and CarMax. Oil prices fluctuated amid geopolitical tensions involving Iran, while Treasury yields ticked higher. The Federal Reserve remains cautious on interest rate moves amid tariff uncertainty.
US Markets Rebound After Holiday Quick Looks
- S&P 500, Dow, and Nasdaq all opened higher
- Kroger and CarMax beat earnings expectations
- Smith & Wesson falls sharply on weak forecast
- Treasury yields rise amid geopolitical and inflation concerns
- Oil prices volatile on Iran conflict and Strait of Hormuz risks
Wall Street Rises With Oil and Earnings in Focus
Deep Look
U.S. stock markets edged higher on Friday as Wall Street reopened following the Juneteenth holiday, with investors weighing strong corporate earnings against ongoing geopolitical tensions and inflation concerns. The S&P 500 climbed 0.4% in early trading, adding to its weekly gains. The Dow Jones Industrial Average rose 162 points, or 0.4%, while the tech-heavy Nasdaq composite led the way with a 0.6% increase.
Investors returned to a complex market landscape, shaped in part by President Donald Trump’s remarks that he will decide within two weeks whether the U.S. will become directly involved in Israel’s ongoing conflict with Iran. The situation has already caused oil markets to fluctuate, as fears rise over potential disruptions to global crude supplies, particularly through the strategic Strait of Hormuz.
On the earnings front, positive surprises lifted sentiment. Kroger surged 6.8% after posting better-than-expected quarterly earnings and raising its revenue outlook for the year. The grocery chain cited strong customer momentum, although CFO David Kennerley noted continued economic uncertainty.
CarMax also impressed, rising 4.6% following a profit report that exceeded analyst forecasts. The used-car retailer reported a nearly 6% year-over-year increase in vehicle sales, highlighting steady consumer demand in the pre-owned vehicle market.
However, not all earnings reports were met with investor enthusiasm. Smith & Wesson Brands tumbled 15.3% after missing profit and revenue estimates. The firearms maker cited “persistent inflation, high interest rates, and uncertainty caused by tariff concerns” as key headwinds. CFO Deana McPherson warned that demand for the upcoming fiscal year could remain flat unless economic conditions improve.
Tariff uncertainty continues to weigh heavily on corporate America, with several companies adjusting or suspending their forecasts. Many businesses remain in limbo, awaiting clarity on the size and scope of new tariffs that could impact both domestic operations and international supply chains.
This uncertainty is also affecting monetary policy. The Federal Reserve opted again this week to hold its benchmark interest rate steady, a decision influenced in part by the potential inflationary effects of tariffs and the broader economic outlook. Markets are increasingly sensitive to any signals about when the Fed might resume rate adjustments.
In the bond market, Treasury yields nudged higher. The 10-year yield rose to 4.41% from 4.38%, while the two-year yield held steady at 3.94%. The upward movement in yields reflects both inflation expectations and investor caution over global tensions and U.S. economic policy.
Global markets also showed mixed results. In Europe, most stock indexes rose modestly, while Asia presented a more uncertain picture. Japan’s Nikkei 225 edged down 0.2% following data that showed core inflation rose to 3.7% in May. This uptick in inflation poses new challenges for Prime Minister Shigeru Ishiba and Japan’s central bank as they navigate a path between stimulus and stability.
With corporate earnings, geopolitical developments, and central bank policy all in flux, investors remain alert to rapidly shifting market forces. As Wall Street settles back into a full trading week, volatility remains a persistent feature of the summer outlook.
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