US stocks rose on Thursday as financial markets moved more modestly a day after surging on optimism about a ceasefire in the war with Iran.
The morning began with moderate losses for Wall Street following drops for Asian and European stocks. But the S&P 500 erased its dip and finished with a 0.6% gain after Israel's prime minister authorised direct negotiations with Lebanon. That eased worries that the two-week ceasefire announced late on Tuesday may already be in trouble because of Israel's bombardment of Lebanon.
The Dow Jones Industrial Average added 275 points, or 0.6%, and the Nasdaq composite climbed 0.8% after both indexes likewise recovered from early losses.
Uncertainty keeping oil prices high
Crude oil prices pared some of their gains, but they nevertheless remained higher for the day on uncertainty about when oil tankers can start fully flowing through the Strait of Hormuz. The narrow waterway has been at the centre of President Donald Trump's demands of Iran, and blockages there have kept oil and natural gas stuck in the Persian Gulf and away from customers worldwide.
The price for a barrel of benchmark US crude rose 3.7% to settle at $US97.87 after briefly nearing $US103 in the morning. Brent crude, the international standard, added 1.2% to $US95.92 per barrel.
Risks remain for renewed fighting, which could cause customers worldwide to hoard whatever oil supplies they do get. That could itself keep oil off the market, much like actual fighting targeting pipelines or oil tankers.
Oil prices have been swinging through sharp and sudden reversals for weeks with hopes rising and falling for the Strait of Hormuz to fully reopen and allow production of oil and natural gas to kick back into gear. Brent oil has gone from roughly $US70 per barrel before the war in late February to more than $US119 at times.
US stocks remain resilient
Despite all the swings, the S&P 500 is just 2.2% below its record set in January.
All told, the S&P 500 rose 41.85 points to 6,824.66. The Dow Jones Industrial Average added 275.88 to 48,185.80, and the Nasdaq composite climbed 187.42 to 22,822.42.
Mixed reports on the US economy also helped keep Wall Street in check. One said an underlying measure of inflation the Federal Reserve considers important was slightly hotter in February than economists expected. It decelerated before the war with Iran began, but not by as much as economists expected.
A separate report said that more US workers applied for unemployment benefits last week than economists expected. The number was not very high compared with history, but it could indicate an acceleration in layoffs.
The Associated Press
