US stocks drift near their records as oil prices sink

The U.S. stock market has been on a nearly relentless run and soared roughly 35% since a low in April, but momentum has slowed this past week. With the U.S. government shut down again, several important economic reports that normally move the market have been delayed.

More action may come later Friday morning, when the University of Michigan will release its latest update on how U.S. consumers are feeling.

In the meantime, the S&P 500 drifted near its all-time high set on Wednesday.

Levi Strauss dropped 9% for one of the market’s bigger moves, even though it reported a stronger profit for the latest quarter than analysts expected. Its forecast for profit over the full year was within range of Wall Street’s estimates, but the jeans and clothing company could simply be facing the challenge of high expectations. Its stock price came into the day with a stellar surge of nearly 42% for the year so far.

The rest of the market is facing similar pressures.

Critics are calling the market too expensive after prices rose much faster than corporate profits, particularly for companies in the artificial-intelligence industry. For stocks to look less expensive, either their prices need to fall, or profits need to rise.

Amcor rose 3.3% after the packaging company named a new chief financial officer and said it’s sticking by its forecast for profit in its coming fiscal year.

Some of the strongest action was in the oil market, where the price of a barrel of benchmark U.S. crude sank 2.4% to $60.03.

It fell as a ceasefire between Israel and Hamas came into effect in Gaza, raising hopes for less violence in the Middle East. An end to the war could remove worries about disruptions to oil supplies, which had kept crude’s price higher than it otherwise would have been.

Brent crude, the international standard, dropped 2.5% to $63.58 per barrel.

In stock markets abroad, indexes barely budged in Europe following a mixed finish in Asia. Hong Kong’s Hang Seng fell 1.7%, and Japan’s Nikkei 225 dropped 1% for two of the bigger moves. But South Korea’s Kospi leaped 1.7% after trading reopened following a holiday.

In the bond market, Treasury yields fell. The yield on the 10-year Treasury sank to 4.09% from 4.14% late Thursday.

The price of gold ticked higher and climbed back above $4,000 per ounce following its sharp slide on Thursday.

AP Writer Teresa Cerojano contributed.