US stocks edge down from their record after oil prices climb 5%
[August 11, 2026] By
STAN CHOE
NEW YORK (AP) — The U.S. stock market edged down from its all-time high
on Monday, while oil prices rose on uncertainty about when the Strait of
Hormuz could reopen and get the global flow of crude going again.
The S&P 500 slipped 0.1% from its record set on Friday. The Dow Jones
Industrial Average dipped 60 points, or 0.1%, and the Nasdaq composite
fell 0.3%.
Momentum slowed for stocks following a rally powered by soaring profits
for big U.S. companies. Reports are on track to show earnings per share
leaped 50% in the spring from a year earlier for companies in the S&P
500, according to FactSet. That would be the best growth since five
years ago, when the economy was roaring out of the chasm created by
COVID.
Berkshire Hathaway is one of the latest companies to deliver a stronger
profit for the last quarter than analysts expected, and the company
built by legendary investor Warren Buffett said over the weekend that
it’s also invested some of its massive pile of cash into stocks under
its new CEO, Greg Abel.
Berkshire Hathaway has been famous for buying stocks at what it
considers low prices, and criticism has been high that U.S. stocks
generally look too expensive. But when they report strong profits, it
helps them look less pricey.
Berkshire Hathaway’s stock rose 1.5%.
MarineMax jumped 46.1% after the retailer, marina operator and
superyacht services provider said it agreed to sell itself for about
$1.5 billion in cash to a portfolio company of Blackstone.
Varex Imaging leaped 48.8% after Teledyne Technologies said it would buy
the maker of X-ray imaging components for $18.90 per share in cash.
But Intel helped offset such gains and fell 4.1% after saying it may
sell $15 billion of its stock. Such a move would dilute the ownership
stakes of shareholders, and Intel said it would likely use the cash for
investments to take advantage of the huge spending underway on
artificial-intelligence technology.
All told, the S&P 500 slipped 4.53 points to 7,753.11. The Dow Jones
Industrial Average dipped 60.95 to 53,975.98, and the Nasdaq composite
sank 85.26 to 26,605.36.
In the oil market, the price for a barrel of Brent crude rose 5% to
$87.72. It had swung between $72 and $102 last month as hopes rose and
fell that the United States and Iran could reach an agreement that would
allow oil tankers to freely exit the Middle East again to deliver crude
worldwide.
[to top of second column] |
A general view shows the New York Stock Exchange, Friday, Aug. 7,
2026, in New York. (AP Photo/Yuki Iwamura)
 But hopes are turning toward caution
again, and the price of Brent is back to where it was earlier this
month, as well as in mid-July, mid-June and in the first week of the
war in March.
Higher oil prices push inflation upward, and the main event for Wall
Street this week will likely be Wednesday’s update on how bad
inflation was last month. Economists expect it to show inflation
slowed to 3.4% from 3.5% in June.
A slowdown would mean less pressure on the Federal Reserve to raise
interest rates.
Higher rates would help keep a lid on inflation, but they would also
slow the economy by making it more expensive for U.S. households and
companies to borrow money. They would also undercut prices for
stocks and other investments.
A report on Friday showing unexpectedly weak hiring across the
United States lowered Wall Street’s expectations for an upcoming
hike to interest rates. But traders still see a nearly 52% chance
the Fed will raise its main interest rate at its next meeting in
September, according to data from CME Group.
The yield on the 10-year Treasury rose to 4.70% from 4.65% late
Friday. That’s up from 3.97% before the war with Iran, and the climb
has already sent rates for mortgages and other kinds of loans
significantly higher.
In stock markets abroad, indexes were mixed in Europe after rising
in much of Asia. Japan’s Nikkei 225 jumped 2.1% for one of the
world’s bigger moves.
___
AP Business Writers Michelle Chapman and Elaine Kurtenbach
contributed to this report.
All contents © copyright 2026 Associated Press. All rights reserved
 |
