Traders appear convinced that the ceasefire means few disruptions to the oil market, which would have raised prices and cut into profits.
U.S. stocks are currently hovering close to their record high, taking a moment to pause after recent surges driven by optimism that the potential Israel-Iran conflict will not severely impact global oil supply.
As of late trading, the S&P 500 dipped by 0.1%, trailing just 0.9% behind its peak. The Dow Jones Industrial Average saw a drop of 159 points, or 0.4%, with an hour left in the trading session, while the Nasdaq composite posted a 0.2% increase.
In the midst of intense focus on the oil market throughout this week, crude oil prices stabilized following a sharp $10 per barrel decline over the past two days. The standard U.S. crude climbed by 55 cents to $64.92 per barrel, although it remains lower than its pre-conflict levels prior to the recent Israel-Iran tensions.
A fragile ceasefire between the two countries appears to be holding, at least for the moment.
On Wall Street, FedEx fell 3.6% despite reporting stronger profit and revenue for the latest quarter than analysts expected. It gave a forecast for profit in the current quarter that fell short of expectations.
General Mills, the company behind Pillsbury and Progresso soups, fell 4.4% after reporting weaker revenue for the latest quarter than analysts expected, though its profit topped forecasts. It also said an underlying measure of profits could fall by 10% to 15% this upcoming fiscal year.
On the winning side of Wall Street, Bumble rose 21.6% after the online dating platform said it would cut about 30% of its workforce, or 240 jobs, to save up to $40 million in annual costs.
QuantumScape jumped 32.1% after announcing a breakthrough in its process for making solid-state batteries. Solid state battery technology promises to improve electric vehicle range, decrease charging times and minimize the risk of battery fires. But they are expensive to research and difficult to manufacture at a large scale, giving them a reputation for being a Holy Grail for battery engineers all over the world.
In the bond market, Treasury yields were holding relatively steady, and the yield on the 10-year Treasury edged down to 4.29% from 4.30% late Tuesday.
Yields had dropped a day before after the chair of the Federal Reserve said it is waiting for the right moment to resume cutting interest rates. By lowering rates, the Fed could help give the economy a boost, but it could also offer additional fuel for inflation.
Fed Chair Jerome Powell told a House of Representatives committee on Tuesday that he wants to wait and see how President Donald Trump’s tariffs affect the economy and inflation before committing to its next move.
Powell echoed many of the same statements in testimony before a Senate committee on Wednesday and said, “For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance.”
In stock markets abroad, indexes fell modestly in Europe after rising across much of Asia.
Stocks jumped 1.2% in Hong Kong and 1% in Shanghai for two of the larger moves.
“The world can now move on to face other difficult choices like tariffs and things like that,” said Frances Lun, CEO of GEO Securities in Hong Kong. “So I think the market is well on its way to rebound and could again reach new levels.”
AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
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