Oil prices climb back toward $100, but US stocks hang near their records

Weighing on the market was a climb of 1.6% for the price for a barrel of Brent crude oil, the international standard, which brought it back to $97.51. It rose after the U.S. military said Iran fired missiles toward Kuwait and Bahrain, which failed to hit their targets. The United States said it then struck an Iranian military ground control station on an island in the Strait of Hormuz.

The war with Iran has already sent oil prices and inflation higher, cranking up the pressure on the global economy. But oil prices still remain below their peaks from earlier in the fighting, and hope seems to be remaining on Wall Street that the United States and Iran will ultimately reach a deal to reopen the Strait of Hormuz to oil tankers. That would improve the global flow of crude and hopefully lower its price.

Such hopes, along with strong profit reports from U.S. companies, have helped launch the U.S. stock market on a tremendous rally to records. If the S&P 500 can turn around and finish the day with a gain, it would be the 10th straight for the index, which would be its longest such streak in more than three decades.

Macy’s rose 1% after the iconic New York department store reported profit for the latest quarter that blew past analysts’ forecasts. The retailer said said an overhaul of its merchandise and better customer service is resonating with customers.

GameStop jumped 9% after the video-game retailer said its revenue in the latest quarter grew 14% from a year earlier. It also announced a program to send up to $2 billion to its investors by buying back its own stock.

On the losing side of Wall Street was Palo Alto Networks, which fell 6.3% despite topping analysts’ expectations for profit in the latest quarter. Investors may have been looking for even more after its stock came into the day with a surge of 61.3% for the year so far, more than quintuple the S&P 500’s already big 11.2% rise.

In the bond market, Treasury yields rose with the price of oil and put downward pressure on the stock market. The yield on the 10-year Treasury climbed to 4.48% from 4.46% late Tuesday and from just 3.97% before the war began.

High yields worldwide recently have threatened to slow economies and undercut prices for stocks and all kinds of other investments. They have already forced the average long-term U.S. mortgage rate to its most expensive level in nine months, and they could curtail companies’ borrowing to build the AI data centers that have supported the U.S. economy’s growth recently.

More expensive loans can hurt smaller companies in particular because of the need for many to borrow to grow. The Russell 2000 index of the smallest U.S. stocks fell 0.8%, more than the rest of the market.

In stock markets abroad, European indexes dipped following a mixed finish in Asia.

Hong Kong’s Hang Seng fell 1.6%, but Japan’s Nikkei 225 jumped 2.5% to another record as computer chip equipment maker Tokyo Electron gained 13.4%.

Excitement around the boom created by artificial-intelligence technology has been a huge engine for stock markets worldwide. On Wall Street, Marvell Technology rose another 4.3% following its best day on record, a surge of 32.5%, after Nvidia’s CEO, Jensen Huang, suggested at a conference in Taiwan that Marvell could be “the next trillion-dollar company.”

The last company to enter the expanding club of behemoths was Micron Technology, which is likewise riding the AI wave.

AP Business Writers Matt Ott and Elaine Kurtenbach contributed.