U.S. Stocks Climb Amid Oil Surge and Ceasefire Hopes

Wall Street rebounded after early losses, fueled by Israel-Lebanon talks easing ceasefire fears.

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 erased its dip and finished with a 0.6% gain after Israel?s prime minister authorized direct negotiations with Lebanon.

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.

Wall Street started with losses amid drops in Asian and European markets but ended with a 0.6% S&P 500 gain after Israel's prime minister greenlit direct talks with Lebanon, easing fears over the fragile two-week ceasefire. Crude oil prices pulled back slightly but stayed higher due to uncertainty around the Strait of Hormuz reopening, with blockages keeping supplies trapped amid U.S.-Iran tensions.

Oil has swung wildly from $70 to over $119 per barrel since late February, yet U.S. stocks hover near highs despite mixed economic signals: hotter-than-expected inflation and rising unemployment claims. High oil could stall Fed rate cuts, fuel inflation, and even prompt hikes if the job market weakens further.

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 that sells Modelo beer and Robert Mondavi wines mentioned it saw encouraging trends heading into its new fiscal year. It pulled its financial forecasts for the following fiscal year because of ?limited near-term visibility? and other factors. CoreWeave rose 3.5% after announcing an expanded, $21 billion deal with Meta Platforms to provide AI cloud capacity through December 2032. 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.

Treasury yields swiveled up and down in the bond market following the reports before pulling near where they were the day before. 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.