US Stocks Climb Toward Records as Oil Prices Ease

U.S. stocks surged on Tuesday, with major indexes poised to reach new highs as oil prices eased from recent peaks. The S&P 500 gained 0.8%, nearing a record set in August, while the Dow Jones Industrial Average rose by 265 points (0.5%) and the Nasdaq climbed 0.8% above its previous all-time high. Brent crude oil, the global benchmark, dropped 2% to $98.30 per barrel, down from nearly $110 a few weeks prior. This decline eased inflationary pressures and reduced bond market tensions, with the 10-year Treasury yield falling to 5.25% from 5.31%.

Notable stock moves included Constellation Energy, which jumped 13% after securing a long-term deal to supply Google with electricity equivalent to a new nuclear reactor. The growing demand for data centers, driven by AI technology, has boosted electricity and construction needs. Option Care Health soared 32.7% following a $5.8 billion acquisition by CD&R and McKesson, with the latter seeing a 0.2% gain. Lamb Weston, a frozen potato products company, reported stronger-than-expected quarterly profits, raising its full-year forecast despite inflation challenges.

Corporate earnings remain robust, with S&P 500 companies expected to post a third straight quarter of over 25% profit growth. Key reports from Delta Air Lines and major banks are upcoming. Abroad, European markets saw modest gains amid bond market volatility, while Asian indexes mixed, with Japan and Hong Kong rising and South Korea falling. In France, protests over education funding drew tens of thousands.