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Financial Markets 05/27 15:34
NEW YORK (AP) -- U.S. stocks inched to more records Wednesday after oil
prices fell and eased the pressure on households and businesses worldwide.
The S&P 500 edged up by less than 0.1% and added to its all-time high set
the day before. The Dow Jones Industrial Average climbed 182 points, or 0.4%,
and the Nasdaq composite gained 0.1% as both indexes also set records.
Stocks of companies with big fuel bills helped lead the way on hopes that
lower oil prices will remove a big drag on their profits. Norwegian Cruise Line
Holdings climbed 6.1%, and United Airlines rallied 6.3%. Delta Air Lines rose
3% and set an all-time high.
The price for a barrel of Brent crude oil fell 4.6% to $92.25 after the
ceasefire between the United States and Iran appeared to hold despite the U.S.
military launching what it called "self-defense" strikes in southern Iran. A
barrel of benchmark U.S. crude fell even more, 5.5%, to settle at $88.68 and is
back to where it was in mid-April on hopes that the United States and Iran can
reach an agreement to reopen the Strait of Hormuz and allow oil tankers to exit
the Persian Gulf for deliveries again.
Stocks have been able to run to records despite the painful inflation and
uncertainty caused by high oil prices largely because companies have reported
surprisingly strong profits for the start of 2026, and the forecast is for them
to continue.
Bath & Body Works rallied 9.7%, and Abercrombie & Fitch climbed 8.9% after
both reported bigger profit for the latest quarter than analysts expected.
That's even as U.S. consumers continue to say they're feeling discouraged about
the economy and inflation.
Lululemon Athletica rose 2.9% after reaching a deal with its founder, Chip
Wilson, where it will add a former chief marketing officer of ESPN and a former
co-CEO of On to its board of directors.
On the losing side of Wall Street was Dick's Sporting Goods, which dropped
6% despite delivering a profit for the latest quarter that edged past
expectations. Analysts pointed to how much profit it wrung out of each $1 in
revenue, which some called a bit weak.
Oil-and-gas stocks also sank, hurt by the dropping prices for crude. Exxon
Mobil fell 1.3%, and Chevron slipped 1.3%. Halliburton dropped 3.6% to bring
its gain for the year so far back toward 40%.
All told, the S&P 500 rose 1.24 to 7,520.36. The Dow Jones Industrial
Average climbed 182.60 points to 50,644.28, and the Nasdaq composite gained
18.55 to 26,674.73.
In the bond market, Treasury yields eased after falling oil prices took
pressure off inflation. The yield on the 10-year Treasury slipped to 4.48% from
4.50% late Tuesday and from 4.67% roughly a week ago.
It's a respite following recent gains for yields in bond markets worldwide,
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 artificial-intelligence data
centers that have supported the U.S. economy's growth recently.
In stock markets abroad, indexes were mixed across Europe and Asia. South
Korea's Kospi was one of the world's best performers and jumped 2.3% after SK
Hynix, which is a big beneficiary of the AI boom, soared 9.3%.
A day before, Micron Technology surged to become the latest Big Tech company
to be worth more than $1 trillion because of AI excitement. Its stock has more
than tripled already in 2026, and analysts at UBS said Tuesday it could soar
even more because of how fundamentally AI has improved demand for computer
memory. It rose another 3.6% Wednesday.
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AP Business Writer Elaine Kurtenbach contributed to this report.
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