U.S. Stocks Rise Amid Oil Gains and Ceasefire Optimism; S&P 500 Nears Record

Stocks rise as markets recover from early losses. Oil prices climb on Strait of Hormuz uncertainty.

U.S. stocks rose Thursday, even though oil prices did too, as financial markets moved more modestly a day after surging on optimism about a ceasefire in the war with Iran. The Dow Jones Industrial Average added 275 points (0.6%) and the Nasdaq composite climbed 0.8% after both indexes likewise recovered from early losses. The S&P 500 is just 2.2% below its record set in January.

The price for a barrel of benchmark U.S. crude rose 3.7% to settle at $97.87 after briefly nearing $103 in the morning. Brent crude, the international standard, added 1.2% to $95.92 per barrel.

Crude oil prices pared some gains but stayed higher amid uncertainty over when tankers can fully flow through the Strait of Hormuz. This narrow waterway, central to President Trump's demands on Iran, has seen blockages trapping oil and natural gas in the Persian Gulf, away from global customers. With the US and Iran far apart, strategists at Macquarie, led by Thierry Wizman, say upward pressure on prices may persist. Risks of renewed fighting could spur hoarding, keeping oil off the market like actual attacks on pipelines or tankers?Brent has swung from $70 pre-war to over $119.

Constellation Brands climbed 8.5% for one of the index?s biggest gains. after reporting stronger results for the latest quarter than analysts expected. The company which sells Modelo beer and Robert Mondavi wines said it saw encouraging trends heading into its new fiscal year. CoreWeave rose 3.5% after announcing an expanded, $21 billion deal with Meta Platforms to provide AI cloud capacity through December 2032 and Meta climbed 2.6%. CoreWeave rose 3.5% after announcing an expanded, $21 billion deal with Meta Platforms to provide AI cloud capacity through December 2032 and Meta climbed 2.6%. Simply Good Foods sank 18.1% after reporting a worse drop in revenue than analysts expected.

In stock markets abroad, South Korea?s Kospi fell 1.6%, and Germany?s DAX lost 1.1% for two of the world?s biggest moves.

The yield on the 10-year Treasury edged down to 4.28% from 4.29% late Wednesday. It?s still well above its 3.97% level from before the war which has sent rates higher for mortgages and other kinds of loans going to U.S. households and businesses.