New York, Jun 25 (AP) US stocks are hanging near their all-time high on Wednesday as financial markets catch a breath following two big days bolstered by hopes that the Israel-Iran war will not disrupt the global flow of crude oil.
The S&P 500 was 0.2 per cent higher in early trading and sitting just 0.7 per cent below its all-time high. The Dow Jones Industrial Average was virtually unchanged, as of 9:35 am Eastern time, and the Nasdaq composite was 0.6 per cent higher.
In the oil market, which has been the centre of much of this week’s action, crude prices stabilized after plunging by roughly USD 10 per barrel in the last two days. Benchmark US crude rose 0.7 per cent to USD 64.81 per barrel, though it still remains below where it was before the fighting between Israel and Iran broke out nearly two weeks ago.
A fragile ceasefire between the two countries appears to be holding, at least for the moment.
On Wall Street, companies involved in the cryptocurrency industry jumped to some of the bigger gains as the price of bitcoin continued to steam ahead with investors willing to take on more risk. Coinbase Global, the crypto exchange, rose 7 per cent, and Robinhood Markets gained 4 per cent as bitcoin topped USD 107,000.
They helped offset a 5.3 per cent drop for FedEx. It reported stronger profit and revenue for the latest quarter than analysts expected, but it gave a forecast for profit in the current quarter that fell short of expectations.
General Mills, the company behind Pillsbury and Progresso soups, fell 2.8 per cent after reporting weaker revenue for the latest quarter than analysts expected, though its profit topped forecasts. It also said an underlying measure of profits could fall by 10 per cent to 15 per cent this upcoming fiscal year.
In the bond market, Treasury yields were holding relatively steady, and the yield on the 10-year Treasury rose to 4.32 per cent from 4.30 per cent late Tuesday.
Yields had dropped a day before after the chair of the Federal Reserve said it is waiting for the right moment to resume cutting interest rates. By lowering rates, the Fed could help give the economy a boost, but it could also offer additional fuel for inflation.
Fed Chair Jerome Powell told a House of Representatives committee on Tuesday that he wants to wait and see how President Donald Trump’s tariffs affect the economy and inflation before committing to its next move. Powell will speak before a Senate committee later Wednesday morning.
In stock markets abroad, indexes fell modestly in Europe after rising across much of Asia.
Stocks jumped 1.2 per cent in Hong Kong and 1 per cent in Shanghai for two of the larger moves.
“The world can now move on to face other difficult choices like tariffs and things like that,” said Frances Lun, CEO of GEO Securities in Hong Kong. “So I think the market is well on its way to rebound and could again reach new levels.” (AP) GRS GRS
