Wall Street Steadies as Oil Stocks Offset Tesla and IBM Losses

U.S. stocks edged higher Thursday, hovering just below record levels, as surging oil prices lifted energy companies and helped offset declines in major tech names like Tesla and IBM.

The S&P 500 climbed 0.4%, moving back within striking distance of its all-time high from earlier this month. The Dow Jones Industrial Average rose 70 points, or 0.2%, while the Nasdaq Composite added 0.5% by mid-morning trading.

Energy shares led the day’s gains following a sharp rise in crude prices after President Donald Trump announced “massive” new sanctions on Russia’s oil industry — targeting state-owned giants Rosneft and Lukoil.

Crude prices jumped roughly 5%, lifting major oil producers such as Exxon Mobil (+1.1%), ConocoPhillips (+3.8%), and Diamondback Energy (+4.1%). The sanctions are aimed at pressuring Russian President Vladimir Putin to end the war in Ukraine by tightening restrictions on oil exports.

Despite the rebound, oil prices remain down more than 10% for the year amid expectations of steady global supply levels.

Tech Stocks Struggle as Earnings Disappoint

The energy sector’s strength helped cushion the market from weakness in key technology names.

Tesla shares slid 3.8% after reporting a quarterly profit that fell short of Wall Street forecasts. Analysts cited continued margin pressure and softening demand for its electric vehicles as contributing factors.

IBM also fell 4%, despite posting stronger-than-expected profit and revenue. Investors instead focused on disappointing results from its Red Hat division, which supplies open-source software.

Meanwhile, Molina Healthcare suffered a steep 19.9% drop after missing profit expectations. CEO Joseph Zubretsky blamed escalating medical costs, echoing warnings from other insurers across the industry.

Corporate Earnings Season in Focus

The broader earnings season continues to show resilience, with most companies beating analyst expectations. Standouts on Thursday included Dow Inc., which surged 11.6%, and Las Vegas Sands, up 12.1%, both buoyed by stronger-than-forecast quarterly results.

Analysts say the market’s next test will be whether earnings growth can sustain lofty valuations after the S&P 500’s 35% rally from its April low.

Gold Rebounds, Bond Yields Steady

After a sharp two-day decline, gold prices rebounded 2.4% to climb back above $4,160 per ounce, ending its brief correction from record highs. The metal has soared 57.5% in 2025, driven by investor anxiety over surging global debt levels and inflation concerns.

The U.S. national debt surpassed $38 trillion this week, renewing debate over fiscal sustainability and future interest rate risks.

In the bond market, the 10-year Treasury yield inched up to 3.98% from 3.97% on Wednesday, reflecting steady investor sentiment ahead of upcoming inflation data.

Global Markets Mixed

Overseas markets delivered a mixed performance. Hong Kong’s Hang Seng rose 0.7%, and Shanghai’s Composite Index gained 0.2% following the conclusion of a key Communist Party meeting in Beijing. Chinese leaders pledged to accelerate technological self-reliance and support domestic innovation.

However, Japan’s Nikkei 225 fell 1.4%, while South Korea’s Kospi dropped 1%, making them among the day’s weakest performers in Asia.