Oil prices whipsaw while US stocks glide near their record heights

Key Points:

• Oil prices experienced extreme volatility, briefly surging to near-war highs due to concerns over the Iran conflict affecting the Strait of Hormuz, before retreating; Brent crude for July delivery peaked at $114.70 but fell back to $108.64.
• The U.S. stock market showed resilience with the S&P 500 rising 0.2% and the Dow Jones up 0.7%, driven by strong earnings reports from major companies like Alphabet, which surged 6.7% after nearly doubling profit expectations, and Amazon, which also beat forecasts.
• Despite positive earnings, some tech stocks declined due to increased spending forecasts; Meta Platforms dropped 10.1% amid concerns over high investment costs in AI infrastructure, while Microsoft fell 2.8% after raising its capital expenditure outlook despite growth in its Azure business.
• Treasury yields eased following the oil price pullback, with the 10-year yield dropping to 4.38%, amid mixed economic signals including slower-than-expected Q1 growth and steady inflation, alongside a decrease in unemployment claims suggesting a stable labor market.
• International markets were mixed, with European indexes rising—London’s FTSE 100 gained 1.5% after the Bank of England held interest rates steady—while Asian markets saw declines, including Hong Kong’s Hang Seng falling 1.3%, despite China’s factory activity remaining in expansion.