NEW YORK — U.S. stocks hovered close to their all-time high on Wednesday, as financial markets paused for breath after two days of gains driven by optimism that the Israel-Iran conflict will not impede the global crude oil supply.
Immediate Impact on Markets
The S&P 500 remained largely unchanged, sitting just 0.8% below its record high set in February. The Dow Jones Industrial Average slipped 106 points, or 0.2%, while the Nasdaq composite rose 0.3%.
Crude Oil Prices Stabilize
In the oil market, crude prices steadied after a sharp drop of approximately $10 per barrel over the past two days. Benchmark U.S. crude rose 55 cents to $64.92 per barrel, although it remains below pre-conflict levels.
Key Statistic: U.S. crude prices rose to $64.92 per barrel, stabilizing after a significant drop.
A fragile ceasefire between Israel and Iran appears to be holding, providing some relief to the markets.
Key Details Emerge
On Wall Street, FedEx shares fell 3.3% despite reporting stronger-than-expected profit and revenue for the latest quarter. The company’s forecast for the current quarter’s profit, however, disappointed analysts.
General Mills, known for Pillsbury and Progresso soups, saw its shares drop 5.1% after reporting weaker-than-anticipated revenue, although its profit exceeded forecasts. The company warned that an underlying profit measure could decline by 10% to 15% in the upcoming fiscal year.
Winners and Losers
In contrast, Bumble surged 25.1% after announcing a 30% workforce reduction to save up to $40 million annually. QuantumScape rallied 30.9% following a breakthrough in its solid-state battery manufacturing process.
By the Numbers: Bumble plans to cut 240 jobs, saving up to $40 million annually.
Industry Response
Companies in the cryptocurrency sector also saw gains as bitcoin continued its upward trajectory. Coinbase Global rose 3.1% as bitcoin surpassed $107,000.
In the bond market, Treasury yields remained relatively stable, with the yield on the 10-year Treasury easing to 4.28% from 4.30% the previous day.
Expert Analysis
Federal Reserve Chair Jerome Powell reiterated the central bank’s cautious approach to interest rate cuts. In his testimony before a Senate committee, Powell emphasized the need to assess the impact of President Donald Trump’s tariffs on the economy before making further policy adjustments.
Quote: “For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance,” said Jerome Powell.
Regional Implications
Internationally, stock indexes in Europe saw modest declines, while markets in Asia experienced gains. Hong Kong’s stocks rose by 1.2%, and Shanghai’s increased by 1%.
“The world can now move on to face other difficult choices like tariffs and things like that,” said Frances Lun, CEO of GEO Securities in Hong Kong. “So I think the market is well on its way to rebound and could again reach new levels.”
What Comes Next
As investors continue to monitor geopolitical developments and economic indicators, the stability in crude oil prices and cautious optimism on Wall Street suggest a period of relative calm in the financial markets.
The situation remains fluid, with market participants closely watching for any signs of escalation in the Israel-Iran conflict and its potential impact on global oil supplies.
Looking ahead, the focus will remain on the Federal Reserve’s policy decisions and their implications for the broader economy.
