Global Stocks Rise as Oil Prices Cool Inflation Fears

Global stock markets saw gains on Tuesday, building on Wall Street's recent momentum as oil prices retreated from recent highs. The S&P 500 climbed 0.5%, edging closer to a record high set in August, while the Dow Jones Industrial Average rose by 185 points, or 0.4%. The Nasdaq composite also added 0.6%, extending its own record high from the previous day. The decline in Brent crude oil prices, which dropped 2.3% to $97.97 per barrel, provided some relief from inflationary pressures that have been squeezing consumers and businesses worldwide.

The easing oil prices also helped calm tensions in the bond market, with the yield on the 10-year Treasury falling slightly to 5.28%. High yields have been a concern, as they make borrowing more expensive and reduce investor appetite for stocks. Among individual stocks, Constellation Energy Group surged 11.5% after announcing a long-term deal to supply electricity to Google, driven by the growing demand for data centers supporting artificial-intelligence technology. Option Care Health soared 32.9% following news of its acquisition by CD&R and McKesson for $32.05 per share, valuing the company at approximately $5.8 billion.

Despite high inflation and expensive oil, U.S. stocks have remained resilient due to strong corporate profits. Lamb Weston, a frozen potato products company, reported better-than-expected profits and revenue for its latest quarter, prompting a 7.3% rise in its stock. CEO Mike Smith noted ongoing cost increases but raised the company's profit forecast for the fiscal year. Analysts expect S&P 500 companies to report a third straight quarter of profit growth above 25%. Abroad, European markets saw modest gains, while Asian markets showed mixed results, with Japan's Nikkei 225 and Hong Kong's Hang Seng rising, but South Korea's Kospi falling 0.9%.