US Stocks Rise as Oil Prices Cool Ahead of Earnings Season
U.S. stocks climbed Tuesday, nearing all-time highs as oil prices eased from recent peaks. The S&P 500 rose 0.5%, while the Dow Jones Industrial Average gained 185 points, or 0.4%. The Nasdaq composite added 0.6% after setting its own record the day before. The drop in Brent crude oil prices, which fell 2.3% to $97.97 per barrel, helped ease inflation pressures and relaxed bond market tensions. The 10-year Treasury yield dipped to 5.28% from 5.31%.
Notable stock movements included Constellation Energy Group, which surged 11.5% after announcing a deal to supply electricity to Google. The demand for AI-driven data centers has boosted electricity and construction needs. Option Care Health soared 32.9% following a $5.8 billion acquisition by CD&R and McKesson. Lamb Weston, a frozen potato products company, reported better-than-expected profits and raised its annual forecast despite inflation challenges.
As earnings season approaches, analysts predict a third straight quarter of over 25% profit growth for S&P 500 companies. Corporate earnings remain a key driver of stock prices amid high inflation and bond market volatility. Overseas, European markets inched higher, while Asian markets showed mixed results, with Japan's Nikkei 225 up 1.1% and South Korea's Kospi down 0.9%.