US Stocks Dip as Oil Prices Rebound

The US stock market is experiencing a slight pullback from its all-time high as oil prices rebound. The S&P 500 fell 0.3% and is now 0.8% below its record set last month, while the Dow Jones Industrial Average dropped 126 points, or 0.2%, by 10 a.m. Eastern time. Meanwhile, the Nasdaq composite slipped 0.5% from its own all-time high.

The increase in oil prices has pushed yields higher in the bond market, which could slow down the economy by making borrowing more expensive. The yield on the 10-year Treasury jumped to 5.03% from 4.96% late Tuesday, with a preliminary report suggesting growth in US business activity surged to its strongest level in over five years.

However, the same report indicated that costs for businesses are rising at their fastest rate in four years due to more expensive fuel, which could lead to higher inflation in the coming months. Despite these concerns, strong profits for US companies have helped support Wall Street. KB Home and General Mills both reported stronger-than-expected profit reports, but their stocks fell 1.3% and 2.2%, respectively.