US stocks hovered near record levels on Thursday, even as oil prices climbed again amid renewed tensions linked to the Iran conflict. Strong corporate earnings continued to support investor sentiment, offsetting concerns about higher energy costs.
Market Performance
The S&P 500 slipped 0.1 per cent from its record high reached a day earlier, according to the Associated Press. The Dow Jones Industrial Average fell 219 points, or 0.4 per cent, while the Nasdaq Composite was down 0.2 per cent in early trade. Both the Dow and Nasdaq had closed at record levels on Wednesday.
Oil Prices Rise on Geopolitical Tensions
Oil prices rose after the US Central Command reported that Kuwait intercepted missiles launched by Iran late Wednesday night. This followed earlier US defensive strikes on missile launch sites and minelaying boats in southern Iran. Brent crude climbed 2 per cent to $96.13 a barrel.
The rise in oil prices weighed on companies with higher fuel costs. Norwegian Cruise Line Holdings fell 1 per cent, while Delta Air Lines declined 1.1 per cent.
Strong Earnings Drive Optimism
Despite concerns about expensive oil and inflation pressures linked to the Iran war, Wall Street remained close to record highs as major companies continued to report stronger-than-expected earnings for the first quarter of 2026.
- Dollar Tree surged 15 per cent after reporting quarterly profit above analyst estimates. CEO Mike Creedon said improved store conditions helped boost profitability despite tariff-related cost pressures. The retailer also issued a full-year profit forecast that exceeded market expectations.
- Kohl's rallied 21.3 per cent after posting better-than-expected quarterly results.
- Hormel Foods gained 8.1 per cent after stronger sales of Jennie-O turkey products and Spam exports helped lift profits.
- Snowflake jumped 33.3 per cent after saying artificial intelligence continued to drive business growth. The company reported quarterly profit and revenue above analyst estimates.
- Salesforce, however, fell 2 per cent despite reporting stronger quarterly profit, amid investor concerns over rising competition from AI-focused rivals.
Bond Market and Economic Data
In the bond market, Treasury yields were mixed after data showed the Federal Reserve's preferred inflation gauge accelerated in April, broadly in line with expectations. The report also showed the US personal savings rate fell to a four-year low of 2.6 per cent. The yield on the 10-year Treasury note stood at 4.48 per cent, unchanged from late Wednesday.
Global Markets
Across global markets, stock indexes mostly declined in Europe and Asia. Hong Kong's Hang Seng index fell 1.3 per cent.
