Stocks Rally to Record Highs as Middle East Tensions Ease, Oil Prices Fall
U.S. stock markets reached record highs on May 5 as ships moved through the Strait of Hormuz under U.S. protection and energy prices pulled back from recent peaks. The rally was supported by strong corporate earnings and optimism about the tenuous ceasefire in the Middle East conflict.
Market Recovery Drives Gains
U.S. equities rose to fresh peaks on Tuesday as a pullback in energy prices tamed inflation concerns, with the S&P 500 and Nasdaq 100 rising 0.7% to record highs, and the Dow rising 0.5%. Stocks crept tentatively higher on news that a ship successfully made it through the Strait of Hormuz under U.S. protection, and oil fell as one ship came through the strait.
Energy Price Relief
Oil and product prices eased as the strikes between Iran against the US and UAE yesterday did not result in all-out attacks against Iranian energy infrastructure, preventing the worsening of an already serious energy shock. Oil falling gave investors a chance to focus on earnings from key tech firms including Palantir (PLTR) last night and Advanced Micro Devices (AMD).
Earnings and Labor Data
Focus also turns to jobs, with the March Job Openings and Labor Turnover Survey (JOLTS) due at 10 a.m. ET, with analysts expecting around 6.8 million openings, slightly down from February.