Newzstocks are rising Tuesday and on track to hit an all-time high after oil prices gave back some of their big recent gains.The S&P 500 added 0.5% and was on pace to finish the day above its record set in August. The Dow Jones Industrial Average was up 185 points, or 0.4%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was adding 0.6% to its own all-time high set the day before.Stocks got a boost after the price of Brent crude oil, the international standard, dropped 2.3% to $97.97 per barrel.
That’s down from nearly $110 a few weeks ago, and the easing removes some pressure from the high inflation that’s squeezing people and businesses worldwide.It also helped relax some of the tension that’s built up in the bond market, and the yield on the 10-year Treasury fell to 5.28% from 5.31% late Monday. Yields worldwide have recently been hitting their highest levels in years or even decades, which slows the economy by making it more expensive for everyone to borrow money and by making investors less willing to pay high prices for stocks.On Wall Street, Constellation Energy Group jumped to one of the market’s biggest gains after rising 11.5%.It announced a long-term deal to supply Google with about as much electricity as a new nuclear reactor makes. The boom in data centers for artificial-intelligence technology has made not just electricity more in demand but also construction crews and materials throughout the economy.Option Care Health soared 32.9% after CD&R and McKesson said they’re buying the provider of infusion services.
The two are paying $32.05 for each Option Care Health share, valuing it at roughly $5.8 billion.CDR is a private investment firm. Shares of McKesson, the healthcare services company, added 0.7%.One of the biggest reasons the U.S. stock market has been able to rally near records despite high inflation, expensive oil and worries in the bond market is that profits for companies have remained remarkably strong.Lamb Weston, which sells frozen fries and other potato products, said on Tuesday that its profit and revenue during its latest quarter topped its projections, for example.
The results also beat analysts’ expectations, and its stock rose 7.3%.CEO Mike Smith said the company continues to deal with unexpected increases in costs for freight and other expenses as inflation remains high. stocks are rising and on track to hit an all-time high after oil prices gave back some of their big recent gains. The S&P 500 added 0.5% early Tuesday and was on pace to finish the day above its record set in August.
The Dow Jones Industrial Average added 200 points, and the Nasdaq composite rose 0.7%. The price of Brent crude, the international standard, dropped 2.1% to $98.21 a barrel. Treasury yields fell.THIS IS A BREAKING NEWS UPDATE.
AP’s earlier story follows below.Wall Street pointed slightly higher in premarket trading Tuesday after nearing a record close to open the week as oil prices retreat to the lowest level in more than a month.Futures for the S&P 500 rose 0.4% before the opening bell, while futures for the Dow Jones Industrial Average climbed 0.6%, as did Nasdaq futures.Surging oil prices and bond yields have added to challenges for the broader stock market and companies in general, but expectations for strong company earnings have helped support stocks’ recent rallies.With little economic data coming this week, markets will continue to monitor geopolitical news as well as a handful of quarterly financial results from Levi's, PepsiCo and Delta Air Lines before earnings season kicks into high gear next week.Oil prices were down about 2% early Tuesday. Brent crude, the international standard, was down $1.99 to $98.33 per barrel, back to below the $100 mark, but still much higher than the roughly $72 a barrel level of late February.Benchmark U.S. crude gave up $1.83 to $87.60 per barrel.Analysts say upward pressures on oil prices have eased as larger volumes of oil have been crossing the Strait of Hormuz and oil flows through Saudi Arabia’s key East-West pipeline have been recovering, although tensions between the U.S.
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