Oil prices surged again Wednesday as fighting in the war with Iran intensified, while U.S. stock markets traded in a mixed pattern.
The price of Brent crude oil rose over 3% to $94 per barrel, briefly topping $95 to hit its highest level in nearly six weeks. The spike is driven by the conflict disrupting tanker traffic through the Strait of Hormuz, a critical chokepoint for global energy supplies.
On Wall Street, the S&P 500 was nearly flat after swinging between modest gains and losses. The Dow Jones Industrial Average was up 0.1%, and the Nasdaq composite dipped 0.3%.
The market's mixed performance reflected a tug-of-war between strong corporate earnings and rising oil costs. Philip Morris International gained 2.4% after reporting better-than-expected profit and revenue. AT&T climbed 2.7% on a strong profit report and an accelerated $10 billion shareholder buyback plan.
Super Micro Computer soared 21.1% after forecasting stronger profit margins for its AI servers. This helped offset a 7.9% drop in GE Vernova following a weak profit report.
Investors are closely watching the AI sector. Alphabet, the parent of Google, edged higher ahead of its earnings report after the market close. The focus is on whether massive investments in AI infrastructure are translating into productivity and profits.
Micron Technology, a key AI player, was volatile, swinging between losses and gains after a recent dramatic selloff and rebound. The stock is still up roughly 241% for the year.
The oil price jump is fueling inflation concerns. The average U.S. gasoline price hit $4.06 per gallon. This could pressure the Federal Reserve to raise interest rates, which would slow economic growth and weigh on stock valuations. The 10-year Treasury yield rose to 4.66%, pushing mortgage rates to near one-year highs.
In Europe, London's FTSE 100 rose 1.2%. In Asia, Hong Kong's Hang Seng fell 1%.