Wall Street rises toward records; BP ousts chairman over ‘conduct’
Stan Choe
The US stock market is heading towards records, matching other gains around the world the day before, when President Donald Trump said negotiations to end the war with Iran were “progressing well”.
The S&P 500 rose 0.6 percent after trading resumed after Monday’s holiday. The Dow Jones fell 156 points (0.3 percent) and the Nasdaq composite rose 1.1 percent. Indices are at or near all-time highs.
The Australian share market is poised for a pullback, with futures pointing to a decline of 17 points, or 0.2 per cent, at the open at 4.57am (AEST). The ASX lost 0.4 per cent on Tuesday. The Australian dollar was trading at 71.67¢.
Wall Street’s indexes pared gains from early morning as fighting continued in the region and the US military said it had carried out “self-defense” strikes in southern Iran, including on missile launch sites and mine-laying boats. Markets had rallied in the past on hopes of ending the war with Iran, only to see the conflict continue.
The price of a barrel of Brent crude, the international standard, rose 3.4 percent to $96.63, but that only partially clawed back a 7.1 percent decline since Monday. Meanwhile, the barrel price of US crude oil fell 2.8 percent to $93.89.
Oil prices have been at the center of movement in financial markets since the US and Israel attacked Iran in late February. The ensuing war closed the Strait of Hormuz to most oil tankers, leaving crude oil stuck in the Persian Gulf instead of flowing to customers around the world. This increased oil prices and created a painful wave of inflation around the world.
Hopes of a deal to improve the flow of oil helped lift shares of companies with large fuel bills. United Airlines rose 5.6 percent and cruise operator Carnival gained 3.2 percent.
Low oil prices also helped lower yields in the U.S. bond market, easing pressure on Wall Street. The yield on the 10-year Treasury note fell to 4.50 percent from 4.56 percent on Friday.
This is a period of respite from recent gains in yields in bond markets around the world, which threaten to slow economies and drive down stock prices and the prices of every other investment. Higher yields have pushed the average long-term U.S. mortgage rate to its most expensive level since last summer, and that could constrain companies from borrowing to build the AI data centers that have recently fueled the growth of the U.S. economy.
Big technology stocks also continued their big rises. Micron Technology rose 20.9 percent to over $900, becoming the strongest force pushing the S&P 500 higher, after UBS analysts led by Timothy Arcuri raised their 12-month price target for the stock to $1,625 from $535. They predict demand for computer memory will continue to grow, and Micron’s shares have tripled so far this year.
That helped offset a 10.8 percent decline for AutoZone, which reported revenue in the last quarter that was slightly weaker than analysts expected, but its profit was above expectations. CEO Phil Daniele said the performance of the retailer’s stores in Brazil and Mexico was below plan.
Most major U.S. companies are reporting profits and revenue at the beginning of 2026 above what analysts expected. Strong performances helped U.S. stocks soar to records despite all the uncertainty about oil prices and the war with Iran.
U.S. households are discouraged about the economy due to accelerating inflation, and a report on Tuesday said consumer confidence fell in May, but the figure was not as bad as economists expected. This follows a report on Friday that sentiment among U.S. consumers has reached its lowest level in history.
Indices in foreign stock markets were mixed. In South Korea, Kospi increased by 2.5 percent, catching up with other markets after closing for a holiday on Monday.
The FTSE 100 index in London gained 0.2 percent despite British oil giant BP falling 4.2 percent. BP has sacked its chairman, Albert Manifold, over what it described as serious concerns about “significant governance standards, oversight and conduct”.
Japan’s Nikkei 225 index fell 0.2 percent from its all-time high set the previous day.
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