Wall Street rises toward records as U.S. stocks catch up to the world’s gains from the day before

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NEW YORK (AP) — The U.S. stock market is ticking toward records Tuesday as it catches up with climbs for others around the world from the day before, when President Donald Trump said negotiations were “proceeding nicely” with Iran on ending their war.

The S&P 500 rose 0.4 per cent after trading resumed following Monday’s holiday. The Dow Jones Industrial Average was down 111 points, or 0.2 per cent, as of noon Eastern time, and the Nasdaq composite was 0.8 per cent higher. All three indexes are near all-time highs.

The indexes pared gains from earlier in the morning as fighting continued in the region, and the U.S. military said it carried out “self-defense” strikes in southern Iran, including on missile launch sites and boats placing mines. Markets have rallied in the past on hopes for a coming end to the war with Iran, only to see the conflict drag on.

The price for a barrel of Brent crude, the international standard, rose 4.1 per cent to US$100.10, but that reclaimed only some of its 7.1 per cent plunge from Monday. The price for a barrel of U.S crude oil, meanwhile, fell 2.8 per cent to US$93.88.

Oil prices have been at the center of the action for financial markets since the United States and Israel attacked Iran in late February. The ensuing war has closed the Strait of Hormuz to most oil tankers, keeping crude pent up in the Persian Gulf instead of flowing to customers worldwide. That in turn has driven up oil’s price and sent a wave of painful inflation around the world.

Hopes for a deal to improve the flow of oil helped lift stocks of companies with big fuel bills. United Airlines rose 5.4 per cent, and cruise operator Carnival steamed 3.2 per cent higher.

The lower oil prices also helped pull yields down in the U.S. bond market, which eased the pressure on Wall Street. The yield on the 10-year Treasury fell to 4.50 per cent from 4.56 per cent late Friday.

It’s a respite following recent gains for yields in bond markets worldwide, which threatened to slow economies and undercut prices for stocks and all kinds of other investments. High yields have already forced the average long-term U.S. mortgage rate to its most expensive level since last summer, and they could curtail companies’ borrowing to build the artificial-intelligence data centers that have supported the U.S. economy’s growth  recently.

Big technology stocks also continued their big runs. Micron Technology leaped 16.5 per cent to top US$870 and was the strongest force lifting the S&P 500 after analysts at UBS led by Timothy Arcuri raised their 12-month price target for the stock to US$1,625 from US$535. They’re forecasting continued strength in demand for computer memory, and Micron’s stock has already tripled so far this year.

That helped offset a drop of 11.6 per cent for AutoZone, which reported slightly weaker revenue for the latest quarter than analysts expected, though its profit topped expectations. CEO Phil Daniele said performance for the retailer’s stores in Brazil and Mexico was below its plan.

Most big U.S. companies have been reporting both profit and revenue for the start of 2026 above what analysts expected. The strong performances have helped vault U.S. stocks to records, even with all the uncertainty around oil prices and the war with Iran.

U.S. households have been feeling discouraged about the economy because of accelerating inflation, and a report on Tuesday said consumer confidence edged downward in May, though the number was not as bad as economists expected. It followed a report on Friday that said sentiment among U.S. consumers hit its lowest level on record.

In stock markets abroad, indexes were mixed. South Korea’s Kospi jumped 2.5 per cent as it caught up with other markets following its closure on Monday for a holiday.

London’s FTSE 100 added 0.2 per cent even though British petroleum giant BP fell 4 per cent there. BP ousted its chairman over what it called serious concerns related to “important governance standards, oversight and conduct.”

Japan’s Nikkei 225 slipped 0.2 per cent from its all-time high set the day before.

Stan Choe, The Associated Press. AP Business Writer Elaine Kurtenbach contributed to this report.