US stocks inch to more records after oil prices drop
[May 28, 2026] By
STAN CHOE
NEW YORK (AP) — U.S. stocks inched to more records Wednesday after oil
prices fell and eased the pressure on households and businesses
worldwide.
The S&P 500 edged up by less than 0.1% and added to its all-time high
set the day before. The Dow Jones Industrial Average climbed 182 points,
or 0.4%, and the Nasdaq composite gained 0.1% as both indexes also set
records.
Stocks of companies with big fuel bills helped lead the way on hopes
that lower oil prices will remove a big drag on their profits. Norwegian
Cruise Line Holdings climbed 6.1%, and United Airlines rallied 6.3%.
Delta Air Lines rose 3% and set an all-time high.
The price for a barrel of Brent crude oil fell 4.6% to $92.25 after the
ceasefire between the United States and Iran appeared to hold despite
the U.S. military launching what it called “self-defense” strikes in
southern Iran. A barrel of benchmark U.S. crude fell even more, 5.5%, to
settle at $88.68 and is back to where it was in mid-April on hopes that
the United States and Iran can reach an agreement to reopen the Strait
of Hormuz and allow oil tankers to exit the Persian Gulf for deliveries
again.
Stocks have been able to run to records despite the painful inflation
and uncertainty caused by high oil prices largely because companies have
reported surprisingly strong profits for the start of 2026, and the
forecast is for them to continue.
Bath & Body Works rallied 9.7%, and Abercrombie & Fitch climbed 8.9%
after both reported bigger profit for the latest quarter than analysts
expected. That’s even as U.S. consumers continue to say they’re feeling
discouraged about the economy and inflation.
Lululemon Athletica rose 2.9% after reaching a deal with its founder,
Chip Wilson, where it will add a former chief marketing officer of ESPN
and a former co-CEO of On to its board of directors.
On the losing side of Wall Street was Dick’s Sporting Goods, which
dropped 6% despite delivering a profit for the latest quarter that edged
past expectations. Analysts pointed to how much profit it wrung out of
each $1 in revenue, which some called a bit weak.
Oil-and-gas stocks also sank, hurt by the dropping prices for crude.
Exxon Mobil fell 1.3%, and Chevron slipped 1.3%. Halliburton dropped
3.6% to bring its gain for the year so far back toward 40%.
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Trader Edward Curran, left, and specialist Meric Greenbaum, center,
work on the floor of the New York Stock Exchange, Friday, May 22,
2026. (AP Photo/Richard Drew)
 All told, the S&P 500 rose 1.24 to
7,520.36. The Dow Jones Industrial Average climbed 182.60 points to
50,644.28, and the Nasdaq composite gained 18.55 to 26,674.73.
In the bond market, Treasury yields eased after falling oil prices
took pressure off inflation. The yield on the 10-year Treasury
slipped to 4.48% from 4.50% late Tuesday and from 4.67% roughly a
week ago.
It’s a respite following recent gains for yields in bond markets
worldwide, which threatened to slow economies and undercut prices
for stocks and all kinds of other investments. High yields have
already forced the average long-term U.S. mortgage rate to its most
expensive level since last summer, and they could curtail companies’
borrowing to build the artificial-intelligence data centers that
have supported the U.S. economy’s growth recently.
In stock markets abroad, indexes were mixed across Europe and Asia.
South Korea’s Kospi was one of the world’s best performers and
jumped 2.3% after SK Hynix, which is a big beneficiary of the AI
boom, soared 9.3%.
A day before, Micron Technology surged to become the latest Big Tech
company to be worth more than $1 trillion because of AI excitement.
Its stock has more than tripled already in 2026, and analysts at UBS
said Tuesday it could soar even more because of how fundamentally AI
has improved demand for computer memory. It rose another 3.6%
Wednesday.
___
AP Business Writer Elaine Kurtenbach contributed to this report.
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