NEW YORK (AP) — U.S. stock markets rose to near all-time highs on Tuesday, while oil prices started to fall. hope rises US and Iran may try again to negotiate an end their war and avoid the worst-case scenario for the global economy.
The S&P 500 rose 1.1%. jump from the previous dayIt wiped out the last losses since the US and Israel launched attacks on Iran in late February. Only 0.2% below the record It was set in January and is trending up for the ninth time in the past 10 days.
As of 1:30 p.m. ET, the Dow Jones Industrial Average was up 275 points, or 0.6%, and the Nasdaq Composite was up 1.8%.
As Pakistan announced its efforts, they followed the rise in stock markets around the world. linking the US and Iran For more details. Such prospects also helped lower the price of oil production and transportation. I was yelled at By battle.
If negotiations are successful and the Iran war remains a temporary setback for the global economy rather than a new normal of skyrocketing oil prices and inflation, financial markets could return to focusing on rising corporate profits and economic growth. As a result of these positive effects, stock markets around the world were generally performing well before the war began.
The price of international standard Brent crude oil fell 4.1% to $95.27 per barrel. This is still above the prewar level of about $70, but well below the $119 peak it reached on several occasions when war fears were at its height.
Indeed, hope often comes quickly. shaken by doubts Since the beginning of the war, extreme events have occurred in the financial markets, sudden reversal. Much of the stress is Strait of Hormuza narrow waterway that is the main passageway for crude oil produced in the Persian Gulf region to reach customers around the world. The blockade there has kept oil off the world market, driving up prices as a result.
And that meant an explosive rise in inflation. Inflation at the wholesale level in the US Accelerated to 4% in March That’s up from 3.4% a month earlier, according to the latest data released Tuesday. That was actually better than the 4.6% interest rate that economists had expected, but it could extend to U.S. households if businesses fully pass on the increase.
Its impact is felt all over the world. Global inflation this year Expected to accelerate to 4.4% Inflation was expected to slow from 4.1% to 3.8% in 2025, according to the International Monetary Fund.
The IMF also on Tuesday revised down its forecast for global economic growth this year to 3.1% from 3.3% in January.
On Wall Street, strong earnings reports from several companies and hopes for further gains helped offset those concerns. Stock prices generally tend to follow corporate profits over the long term, and analysts expect S&P 500 companies to post strong growth of nearly 13% in the latest quarter, according to FactSet.
According to Morgan Stanley, there is a lot of optimism about the strength of American companies’ profitability, with analysts even raising their S&P 500 earnings forecasts for the first half of this year since the end of February.
BlackRock rose 3.6% on Tuesday and Citigroup rose 3.3% after the financial companies said their latest quarterly profits and sales were stronger than analysts expected.
JPMorgan Chase also reported better-than-expected quarterly results, but its stock fell 0.6% after Chief Executive Jamie Dimon said there was so much uncertainty that bankers could not predict how an “increasingly complex set of risks” would play out.
Amazon rose 4.3% after announcing it would acquire mobile satellite services company Globalstar for $90 a share in cash or Amazon stock. Globalstar rose 9.8%.
Software companies also rallied for a second day, recouping even more of their heavy losses at the start of the year on concerns that artificial intelligence technology would make them obsolete. AppLovin rose 4.2%, and the iShares ETF, which tracks the software industry, rose 1.6%.
This led to the recovery of private financial companies. These companies lend money to software companies and other companies that may be under threat from AI, and have recently seen investors rush to withdraw their funds.
Blue Owl Capital rose 7.9%, narrowing its year-to-date loss to 39%. Ares Management rose 5.4% and Apollo Global Management rose 3.5%.
That helped offset a 4.4% decline at Wells Fargo, which reported revenue for the most recent quarter that fell short of analysts’ expectations.
In overseas stock markets, indexes rose in most regions of Europe and Asia. South Korea’s Kospi rose 2.7% and Japan’s Nikkei Stock Average rose 2.4%, two of the biggest gains.
In the bond market, US Treasury yields declined as lower oil prices eased some inflationary pressures. The yield on the 10-year U.S. Treasury note fell to 4.26% from 4.30% late Monday.
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AP Business Writers Chan Ho-him and Matt Ott contributed to this report.
