US Stocks Near Record Highs as Oil Prices Ease and Earnings Shine

US stocks edged closer to all-time highs on Tuesday, with the S&P 500 gaining 0.6% and on track to surpass its August record. Despite ongoing concerns over war, inflation, and rising bond yields, the index has surged 23% since its low in late March. The Dow Jones Industrial Average added 201 points (0.4%), while the Nasdaq composite rose 0.5%, extending its own record set the day before.

Oil prices have eased slightly, with Brent crude falling 0.1% to $100.21 per barrel, down from nearly $110 a few weeks ago. This reduction in inflation pressure helped lower the yield on the 10-year Treasury to 5.28% from 5.31%. Companies continue to report strong profits, with Lamb Weston, a frozen food producer, beating earnings expectations and raising its full-year profit forecast. CEO Mike Smith noted challenges from inflation but highlighted the company's resilience.

Analysts expect S&P 500 companies to report nearly 30% year-over-year earnings growth for the third quarter, marking the third consecutive quarter of growth exceeding 25%. Stocks tied to artificial intelligence, such as Constellation Energy, surged 15% after announcing a major deal with Google. Option Care Health skyrocketed 33.1% following a $5.8 billion acquisition by CD&R and McKesson.

Internationally, European markets saw modest gains, while Asian markets were mixed. Japan's Nikkei 225 rose 1.1%, Hong Kong's Hang Seng climbed 1%, but South Korea's Kospi fell 0.9%. Protests in France over school funding also made headlines.