NEW YORK (AP) — Oil prices are falling on Tuesday, which is helping to ease worries in and support stock prices.
The S&P 500 rose 0.2% and edged a bit closer to set earlier this month. The Dow Jones Industrial Average was up 58 points, or 0.1%, as of 10:15 a.m. Eastern time, and the Nasdaq composite was 0.5% higher.
Some of the strongest action was in the oil market, where the price for a barrel of Brent crude fell 2.7 to $88.10 and was heading for a second decline following 13 gains in 14 days. The drop came even though tensions between the United States and Iran seemed to ratchet higher after the Trump administration to further hurt Iran’s economy.
Brent’s price zigzagged between $72 and $102 last month as hopes rose and fell that could reach a deal that would allow oil tankers to freely exit the Persian Gulf again.
Tuesday’s drop in oil prices tempered the worries about that helped drive Treasury yields in the bond market higher through the summer. Yields had gotten so high that the U.S. Treasury Department announced to increase its repurchases of longer-term Treasury notes and bonds.
High yields make and can slow the economy’s growth while undercutting prices for stocks, cryptocurrencies and other investments.
The yield on the 10-year Treasury fell to 4.66% from 4.70% late Monday and from 4.74% at the end of last week. That’s a significant move for the bond market, though the 10-year yield remains firmly above its 3.97% level from before the war with Iran sent oil prices and worries about inflation much higher.
On Wall Street, Nvidia and other winners of the boom in technology helped lead the way. Nvidia rose 2.3%, a day after its drop of 2.9% was the heaviest weight on the S&P 500.
AI stocks have veered up and down through the summer on worries that their prices shot too high and that the AI boom may not be sustainable if it doesn’t produce enough profits for companies. Nvidia will report its latest quarterly results on Wednesday, which could help steer the next move for AI-related stocks.
The gains for chip stocks helped offset a 25.5% drop for Dick’s Sporting Goods, which reported weaker results for the latest quarter than analysts expected. Executive Chairman Ed Stack said the retailer cut prices on some of its footwear and apparel to remain competitive, while launches for some footwear during the quarter ended up being weaker than it expected.
The company cut is forecast for an underlying measure of profit in 2026 for both its Dick’s and Foot Locker businesses. Its stock is potentially heading toward its worst day in three years.
Worries have been rising about how strong spending can remain for U.S. households, which is the main engine of the economy. They’re facing higher prices on everything from food to clothes and a after employers cut more jobs last month than they added.
A report from the Conference Board on Tuesday said that by more than economists expected.
In stock markets around the world, many indexes drifted modestly higher. South Korea’s Kospi, which is dominated by two AI winners, added 0.7% for one of the world’s biggest moves. It’s been steadying since plunging 22.2% in July.
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AP Business Writers Matt Ott and Elaine Kurtenbach contributed to this report.
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