Stocks Erase Losses After Oil Prices Turn Lower

US stocks ticked higher on Thursday following the latest reversal for oil prices.

• The S&P 500 rose 12.75 points, or 0.2%, to 7,445.72.
• The Dow Jones Industrial Average rose 276.31 points, or 0.6%, to 50,285.66.
• The Nasdaq composite rose 22.74 points, or 0.1%, to 26,293.10.

All three indexes erased early drops and gained strength following the latest U-turn for oil prices, the AP reports. Brent crude oil briefly got above $109 per barrel in the morning, threatening to worsen the world's already high inflation, before quickly erasing all its gains in midday trading and falling 2.3% to settle at $102.58. Oil prices are yo-yoing because of uncertainty about how long the war with Iran will keep the Strait of Hormuz shut.

As oil prices eased Thursday, so did pressure on Wall Street that's been building from the bond market. Yields had climbed so high that they're threatening to slow economies worldwide and undercut prices for stocks, bitcoin, and all kinds of other investments. They've already forced the average long-term US mortgage rate to its most expensive level since last summer, and they could curtail companies' borrowing to build the AI data centers that have been supporting the US economy's growth recently.

• The yield on the 10-year Treasury briefly got near 4.63% in the morning before falling back to 4.55% following the midday turnaround for oil prices. That's down from 4.57% late Wednesday and from 4.67% the day before.

On Wall Street, stocks of companies with big fuel bills rose because of the easing of oil prices. Southwest Airlines climbed 2.7%, and American Airlines flew 4.9% higher. Ralph Lauren jumped 13.8% after reporting stronger profit and revenue for the latest quarter than analysts expected. They helped offset a 1.8% drop for Nvidia, which is one of Wall Street's most influential stocks because of its immense size. The chip company reported stronger profit and revenue for the latest quarter than analysts expected, while also forecasting revenue for the current quarter that cleared analysts' estimates. But such performances have become routine, and Nvidia's stock swiveled between losses and gains before falling.

Walmart fell 7.3% following its profit report. The retailer delivered another quarter of impressive revenue but offered up weaker forecasts for upcoming profit than analysts expected. Walmart has resonated with Americans who have grown increasingly cautious about where they spend their money with inflation taking a bigger bite out of paychecks, and discouraged about the economy. A preliminary report on US business activity suggested that companies are also feeling the bite of higher inflation. "The damaging economic impact from the war in the Middle East is becoming increasingly evident in the business surveys," according to Chris Williamson, chief business economist at S&P Global Market Intelligence.