S&P 500 Edges Up to Record Amid Oil Surge and M&A News
Brent crude oil surged 2.9% to $104.21/barrel after President Trump declared the U.S.-Iran ceasefire on ?life support? by rejecting Iran?s latest proposal, heightening tensions ahead of his China trip where he may press Xi Jinping?whose country buys most of Iran?s sanctioned oil?to force concessions. The war has spiked prices from $70 by closing the Strait of Hormuz, stranding tankers and fueling global inflation, yet U.S. stocks hit records on hopes of short-lived highs, with firms beating profit forecasts, the economy resilient, and households discouraged by pricier gas and tariffs.
Mosaic the fertilizer company fell 1.8% benefiting from higher prices for its products, but it?s also contending with much higher prices for sulfur and other raw materials because of logistics snarls created by the war with Iran.
Stocks of companies whose customers have the least cushion to absorb higher gasoline prices also struggled, and Dollar General fell 7.6%. Businesses with big fuel bills likewise had sharp losses, including drops of 4.3% for Royal Caribbean and 3.2% for Southwest Airlines. Helping to offset that was Fox which climbed 7.6% after reporting stronger profit and revenue for the latest quarter than analysts expected.
Beazer Homes USA soared 34% after Dream Finders Homes offered to buy it in a deal valued at roughly $704 million. A combination would create the country?s seventh-largest homebuilder, and Dream Finders is asking Beazer?s shareholders to push its management and board to OK the deal after making several attempts itself. Dream Finders rose 5%. Tech stocks were also strong, continuing their big run amid the AI boom. Gains of 2% for Nvidia and 6.5% for Micron Technology were the strongest forces pushing the S&P 500 upward.
In stock markets abroad, indexes were mixed across Europe and Asia. France?s CAC 40 fell 0.7% for one of the world?s bigger losses, while South Korea?s Kospi soared 4.3% thanks to gains for Samsung Electronics, SK Hynix and other tech stocks benefiting from AI.
In the bond market, Treasury yields ticked higher. The 10-year yield rose to 4.40% from 4.38% late Friday.
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