NEW YORK (AP) — U.S. stocks are drifting near their records Monday after trading resumed following a three-day weekend for Wall Street.
The S&P 500 rose 0.1%, coming off its 11th winning week in the last 12, and is within 1.3% of its all-time high set early this month. The Dow Jones Industrial Average was up 220 points, or 0.4%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 0.2% lower.
In the oil market, prices eased following talks over the weekend between the United States and Iran on their war. U.S. Vice President JD Vance said they created a “good foundation for a successful final deal.”
An end to the war could clear the Strait of Hormuz for oil tankers and allow for the undisputed resumption of deliveries from the Persian Gulf. Iran’s military had said Saturday that it closed the Strait of Hormuz again, though U.S. Central Command has disputed that.
The price for a barrel of Brent crude oil fell 2.8% to $78.34, closer to its roughly $70 price from before the war.
The lower oil prices, though, did not pull down Treasury yields in the bond market. Yields have been on the rise with worries that the Federal Reserve may have to hike interest rates later this year in order to keep a lid on inflation, which has been climbing because of expensive oil caused by the Iran war. Economists expect a report on Thursday to show a measure of inflation for U.S. consumers accelerated to 4.1% in May from 3.8% in April.
The yield on the 10-year Treasury climbed to 4.49% from 4.46% late Thursday.
Traders are betting on a nearly 90% chance the Fed will have to raise its federal funds rate at least once by the end of the year, with a small minority calling for four. That’s up from the 57% chance seen just a week ago, according to data from CME Group.
High yields in bond markets worldwide caused by worries about inflation have already been threatening to slow economies and undercut prices for all kinds of investments. High yields particularly hurt investments that are seen to be the most expensive, raising the pressure on companies that have soared in the mania around artificial-intelligence technology.
SpaceX fell 6.1% to drop back below $174. It’s heading toward a third straight loss following a big three-day run since its ballyhooed debut on the U.S. stock market, when it initially sold its stock at $135 per share.
Elsewhere on Wall Street, AbbVie climbed 4.9% after saying it agreed to buy Apogee Therapeutics and its potential treatments for patients with dermatologic, respiratory and other related inflammatory and immunological diseases. Apogee Therapeutics soared 46.9% on news of the deal, valued at roughly $10.9 billion.
In stock markets abroad, the United Kingdom’s FTSE 100 rose 0.5% after Keir Starmer announced he was stepping down as leader of the governing Labour Party and will leave office within weeks.
In Asia, Tokyo’s Nikkei 225 jumped 1.5% and ended at another all-time high, led by technology stocks fueled by excitement about the AI boom. South Korea’s Kospi gained 0.7% to its own record, helped by AI-related companies.
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AP Business Writers Chan Ho-him and Matt Ott and AP Senior Producer Mayuko Ono contributed to this report.
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