Rising Oil Prices Offset Gains from Strong Corporate Earnings Reports
Global shares slipped on Tuesday as concerns about rising oil prices offset gains from strong corporate earnings reports. The Dow Jones Industrial Average dipped by 156 points, and the Nasdaq composite sank 1.2%, while most stocks in the S&P 500 actually rose.
The S&P 500 fell 0.6% and is on track for a third straight modest loss since setting its all-time high on Thursday. The benchmark index has been weighed down by losses from AI stocks like Nvidia and Micron Technology, which have come under criticism for their price surges.
Analysts said that robust earnings reports in Asia and the US, partly tied to artificial intelligence, have helped counter worries about rising oil prices due to the ongoing conflict in Iran. Japan imports almost all its oil, making it particularly vulnerable to price hikes.
Rising oil prices have been a major factor behind stubbornly high inflation, with Brent crude prices reaching $90.94 a barrel and benchmark US crude at $84.99 a barrel on Tuesday.