NEW YORK – U.S. stock indexes finished little changed Wednesday as another surge in oil prices offset the impact of a busy day of corporate earnings, with investors weighing the economic risks posed by the ongoing conflict involving Iran.
The S&P 500 slipped 0.1% to close at 7,498.96 after recording its strongest daily gain in three weeks on Tuesday. The Dow Jones Industrial Average edged down 6.06 points to 52,218.58, while the Nasdaq Composite fell 146.30 points, or 0.6%, to 25,690.90.
Although the broader market saw only modest movement, several companies posted sharp gains or losses following quarterly earnings reports and business updates.
Earnings Drive Individual Stock Moves
Philip Morris International rose 3.3% after reporting quarterly revenue and profit that exceeded analysts’ expectations. The company also said shipments of its smoke-free products increased 7.5% during the quarter.
AT&T gained 3.5% after posting stronger-than-expected earnings. Chief Executive Officer John Stankey said the telecommunications company plans to return about $10 billion to shareholders this year through stock repurchases.
Super Micro Computer surged 19.8% after the artificial intelligence server maker projected higher profit margins for the latest quarter than previously expected. However, the company said revenue is still likely to fall near the lower end of its earlier guidance of $11 billion to $12.5 billion.
Among the session’s weakest performers, GE Vernova fell 8.7% after reporting quarterly profit below analysts’ expectations.
Alphabet declined 1.5% ahead of releasing quarterly earnings after the market closed.
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Investors closely watched the Google parent because of its substantial investment in artificial intelligence infrastructure. The results were viewed as an important indicator of whether heavy spending on AI chips, data centers and related technologies is translating into stronger financial performance.
Micron Technology reflected that uncertainty, swinging between gains and losses before closing down 1.2%. The memory-chip maker had rallied 14.4% over the previous two trading sessions and remains up 236% for the year.
Oil Prices Renew Inflation Concerns
Energy markets remained a central focus as crude oil prices extended their recent rally.
Brent crude, the international benchmark, rose 3.4% to settle at $94.07 per barrel after briefly climbing above $95, its highest level in nearly six weeks. Earlier this month, Brent had traded below $72 per barrel before tensions involving Iran escalated.
Higher energy prices increase costs across the global economy and risk slowing recent progress in reducing inflation. Persistent price pressures could lead central banks, including the U.S. Federal Reserve, to keep interest rates higher for longer or tighten monetary policy further.
Reflecting those concerns, the yield on the benchmark 10-year U.S. Treasury note rose to 4.65% from 4.63% a day earlier and has climbed significantly from 3.97% before the regional conflict intensified.
Higher Treasury yields have also contributed to rising long-term mortgage rates across the United States.
Oil prices have been supported by disruptions affecting tanker traffic through the Strait of Hormuz, a strategic shipping route through which roughly one-fifth of globally traded oil and natural gas normally passes.
According to the American Automobile Association (AAA), the national average price of regular gasoline increased to $4.06 per gallon on Wednesday. Although still below the approximately $4.56 peak reached in May, gasoline prices had been below $3 per gallon before U.S. and Israeli strikes on Iran in late February.
Overseas Markets
International stock markets delivered mixed performances.
European markets generally advanced, with London’s FTSE 100 gaining 1.2%, while Hong Kong’s Hang Seng Index fell 1% after mixed trading across Asia.
This report is based on reporting by The Associated Press.
Article Topics: Oil Prices | Wall Street | Stock Market | Corporate Earnings | Inflation | Iran Conflict | AI Stocks
