US stocks rise and oil prices trim their gains on hopes for the
ceasefire with Iran
[April 10, 2026] By
STAN CHOE
NEW YORK (AP) — U.S. stocks rose Thursday, even though oil prices did
too, as financial markets moved more modestly a day after surging on
optimism about a ceasefire in the war with Iran.
The morning began with moderate losses for Wall Street following drops
for Asian and European stocks. But the S&P 500 erased its dip and
finished with a 0.6% gain after Israel’s prime minister authorized
direct negotiations with Lebanon. That eased worries that the two-week
ceasefire announced late Tuesday may already be in trouble because of
Israel’s bombardment of Lebanon.
The Dow Jones Industrial Average added 275 points, or 0.6%, and the
Nasdaq composite climbed 0.8% after both indexes likewise recovered from
early losses.
Crude oil prices pared some of their gains, but they nevertheless
remained higher for the day on uncertainty about when oil tankers can
start fully flowing through the Strait of Hormuz. The narrow waterway
has been at the center of President Donald Trump’s demands of Iran, and
blockages there have kept oil and natural gas stuck in the Persian Gulf
and away from customers worldwide.
The price for a barrel of benchmark U.S. crude rose 3.7% to settle at
$97.87 after briefly nearing $103 in the morning. Brent crude, the
international standard, added 1.2% to $95.92 per barrel.
Given how far apart the United States and Iran seem to be in their
demands, upward pressure on oil prices may be “here to stay for a while”
according to strategists at Macquarie led by Thierry Wizman. Risks
remain for renewed fighting, which could cause customers worldwide to
hoard whatever oil supplies they do get. That could itself keep oil off
the market, much like actual fighting targeting pipelines or oil
tankers.
Oil prices have been swinging through sharp and sudden reversals for
weeks with hopes rising and falling for the Strait of Hormuz to fully
reopen and allow production of oil and natural gas to kick back into
gear. Brent oil has gone from roughly $70 per barrel before the war in
late February to more than $119 at times.
Despite all the swings, the U.S. stock index at the heart of many 401(k)
accounts isn’t far from its all-time high. The S&P 500 is just 2.2%
below its record set in January.
Constellation Brands climbed 8.5% for one of the index’s biggest gains
on Thursday after reporting stronger results for the latest quarter than
analysts expected. The company, which sells Modelo beer and Robert
Mondavi wines, said it saw encouraging trends heading into its new
fiscal year. But it pulled its financial forecasts for the following
fiscal year because of “limited near-term visibility” and other factors.
[to top of second column] |
Robert Greason works on the floor at the New York Stock Exchange in
New York, Tuesday, April 7, 2026. (AP Photo/Seth Wenig)
 CoreWeave rose 3.5% after announcing
an expanded, $21 billion deal with Meta Platforms to provide AI
cloud capacity through December 2032. Meta climbed 2.6%.
On the losing end of Wall Street was Simply Good Foods, which sank
18.1% after reporting a worse drop in revenue than analysts
expected. CEO Joe Scalzo called the results unsatisfactory and said
the company behind the Quest and Atkins brands is making immediate
changes to turn around its performance.
All told, the S&P 500 rose 41.85 points to 6,824.66. The Dow Jones
Industrial Average added 275.88 to 48,185.80, and the Nasdaq
composite climbed 187.42 to 22,822.42.
Mixed reports on the U.S. economy also helped keep Wall Street in
check. One said an underlying measure of inflation the Federal
Reserve considers important was slightly hotter in February than
economists expected. It decelerated before the war with Iran began,
but not by as much as economists expected.
A separate report said that more U.S. workers applied for
unemployment benefits last week than economists expected. The number
was not very high compared with history, but it could indicate an
acceleration in layoffs.
Treasury yields swiveled up and down in the bond market following
the reports before pulling near where they were the day before.
The yield on the 10-year Treasury edged down to 4.28% from 4.29%
late Wednesday. It’s still well above its 3.97% level from before
the war, which has sent rates higher for mortgages and other kinds
of loans going to U.S. households and businesses.
If oil prices stay high and keep upward pressure on inflation, the
Federal Reserve would have a tough time resuming its cuts to
interest rates to help the slowing economy, even if the job market
weakens. A growing number of Fed officials seem to be considering
the possibility of a hike in rates, according to minutes of their
latest meeting released on Wednesday.
In stock markets abroad, South Korea’s Kospi fell 1.6%, and
Germany’s DAX lost 1.1% for two of the world’s biggest moves.
___
AP Writers Chan Ho-him, Matt Ott and Aniruddha Ghosal contributed to
this report.
All contents © copyright 2026 Associated Press. All rights reserved |
