Wall Street catches up to the gains made by other markets around the world the day before
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.
___
AP Business Writer Elaine Kurtenbach contributed to this report.
© Copyright The Associated Press. All rights reserved. The information contained in this news report may not be published, broadcast or otherwise distributed without the prior written authority of The Associated Press.
