Falling oil prices help calm worries about inflation, and Wall Street rallies

Key Points:

• Oil prices fell nearly 5% to $83.59 a barrel after President Trump delayed new strikes on Iran, easing fears about global crude supply and calming inflation concerns.
• U.S. stock indexes rallied, with the S&P 500 up 1.2%, Dow Jones rising 1.1%, and Nasdaq gaining 1.8%, led by airlines and fuel-intensive companies benefiting from lower oil costs.
• Corporate earnings reports remain strong, with S&P 500 companies expected to show 47% year-over-year earnings growth for spring, the best since 2021, supporting stock prices despite market volatility.
• Manufacturing growth in the U.S. accelerated to its highest level since 2022, adding to optimism about the economy’s strength.
• Tech stocks, particularly chipmakers linked to the AI boom, experienced sharp swings amid uncertainty over the sustainability of AI-driven revenue and investment, while Asian markets saw mixed reactions with South Korea’s Kospi falling sharply and Japan’s Nikkei dipping slightly amid currency intervention concerns.