U.S. stocks held close to their all-time highs on Wednesday, taking a breather after two days of gains driven by easing concerns that conflict between Israel and Iran might disrupt global oil supplies.
By early afternoon, the S&P 500 was mostly flat, sitting just 0.9% below its historical peak. The Dow Jones Industrial Average slipped by 121 points, or 0.3%, while the Nasdaq composite ticked up 0.2%.
In the oil market—where recent volatility has been focused—prices steadied following a sharp drop of about $10 per barrel over the past two days. U.S. benchmark crude climbed 2.2% to $65.79 per barrel, still lower than its level before fighting erupted between Israel and Iran nearly two weeks ago. A tentative ceasefire between the two countries is currently holding.
On Wall Street, crypto-related companies gained ground as bitcoin extended its rally, signaling rising investor appetite for risk. Coinbase rose 1.2%, and Robinhood added 0.4% as bitcoin surged past $107,000.
QuantumScape, a company developing solid-state batteries, surged 31.5% after announcing a major technological advance. Solid-state batteries, seen as the next big leap in electric vehicle technology, could offer longer range, faster charging, and enhanced safety—but they remain expensive and difficult to produce at scale.
These gains helped balance out a 2% decline in FedEx shares. While the shipping giant beat profit and revenue expectations for the latest quarter, its earnings forecast for the current period came in below analysts’ estimates.
Meanwhile, General Mills—maker of brands like Pillsbury and Progresso—dropped 4.1%. The company reported lower-than-expected revenue, even though profits surpassed projections. It also warned that a key profit measure could decline 10% to 15% in the upcoming fiscal year.
In the bond market, Treasury yields remained steady. The 10-year yield inched up to 4.31% from 4.30% the previous day. Yields had slipped earlier after Federal Reserve Chair Jerome Powell signaled caution around interest rate cuts.
Powell told a House committee on Tuesday that the central bank is waiting for more clarity on how economic factors—including tariffs announced by President Donald Trump—will affect inflation and growth. He echoed this message in a Senate hearing Wednesday, saying, “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.”
Global markets were mixed. European indexes slipped slightly, while Asian stocks rose. Hong Kong’s market gained 1.2%, and Shanghai’s rose 1%, among the more significant regional moves.
Frances Lun, CEO of GEO Securities in Hong Kong, noted, “The world can now move on to face other difficult choices like tariffs and things like that. So I think the market is well on its way to rebound and could again reach new levels.”
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U.S. Stocks Steady and Oil Prices Waver as Wall Street Stays Calm Following Strikes on Iran
