U.S. stocks moved higher in late trading on Thursday, with Treasury yields turning lower. The earlier rallies in crude oil prices and U.S. Treasury yields reversed, as traders expressed hope for a resolution to Middle East conflicts.
The Dow Jones Industrial Average rose 347.78 points, or 0.70%, to close at 50,357.13. The Nasdaq Composite gained 55.92 points, or 0.21%, finishing at 26,326.28. The S&P 500 added 19.79 points, or 0.27%, ending at 7,452.76.
Major indices climbed as oil prices pared earlier gains. West Texas Intermediate crude futures were last down about 2%, trading near $96 per barrel. Brent crude also fell about 2%, to around $102 per barrel.
Earlier reports that Iran's supreme leader had ordered the country's enriched uranium to be kept within its borders initially sent oil prices sharply higher, adding further complexity to the prospects for a U.S.-Iran conflict resolution.
The initial surge in oil prices subsequently pushed U.S. Treasury yields higher, as traders grew concerned about rising inflation. However, the benchmark 10-year U.S. Treasury yield and the 30-year yield later turned lower, falling by more than 1 basis point to 4.556% and by more than 2 basis points to 5.09%, respectively.
On Wednesday, stocks rose as oil and bond yields retreated, ending a three-day losing streak for the S&P 500. Investor sentiment was buoyed after the U.S. President stated that government negotiations with Iran had entered a "final stage," according to a pool report.
Robert Conzo, CEO of The Wealth Alliance, commented, "If inflation rears its head because oil stays at $100 or above, which could happen, then you could have some short-term worries around that, you'll hear a lot of headline risk." He noted, however, that the current CBOE Volatility Index level around 17 suggests investors are "feeling fairly comfortable," given the prevalence of AI, strong corporate earnings, and low unemployment.
He added, "Everyone is watching to see if a deal can be struck."
On Thursday, traders also digested Nvidia's latest quarterly earnings. The chipmaker easily surpassed Wall Street expectations for both profit and guidance and announced an increase in its quarterly cash dividend to 25 cents. However, investors have grown accustomed to seeing the company exceed expectations and raise its outlook amid the AI boom.
Nvidia's stock was last down nearly 1%.
Conzo remarked, "People are going to say 'we want more,' they just want more, to the point where more is unrealistic."
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