NEW YORK (AP) 鈥� Stocks rose, and eased Thursday as financial markets calmed in the wait to see after raised in the .
The S&P 500 climbed 0.7% and more than recovered , even though the against Iran, which responded by targeting U.S. allies in the Middle East. The Dow Jones Industrial Average was up 119 points, or 0.2%, with an hour remaining in trading, and the Nasdaq composite was 1.2% higher.
In the oil market, prices gave back much of their jumps from the day before. The price for a barrel of Brent crude, the international standard, fell 2.2% to $76.30. That鈥檚 down from $78.02 the day before though still above its $71.80 price from the end of last week.
The worry is that a return to full-blown war will block oil tankers from and prevent the delivery of crude from the Persian Gulf to customers worldwide. That could worsen , which economists expected would ease with oil prices, and in turn force and other central banks to
Higher rates can keep a lid on inflation, but they also for all kinds of investments.
But Trump also said Wednesday that the latest back-and-forth fighting would not result in 鈥渓ong-term鈥� military action, raising uncertainty about just what will happen.
The swings for oil prices halted what had been a steady decline in gasoline prices, and the cost for a gallon climbed a nickel overnight, according to motor club AAA. The average price for a gallon of regular gasoline was $3.85 Thursday, up 68 cents from a year earlier.
In the meantime, renewed strength for makers of computer chips and other winners of the boom around artificial-intelligence technology is helping to support stock markets worldwide.
In South Korea, whose stock market is dominated by two companies that make semiconductors, the Kospi index rose 0.6% after tumbling 5.3% the day before. SK Hynix, which is preparing to sell shares of its stock that will trade in the United States, jumped 5.3% in Seoul.
On Wall Street, Broadcom鈥檚 4% rise was the strongest force pushing upward on the S&P 500.
Close behind was Micron Technology鈥檚 climb of 6.3%. Micron cited 鈥渟urging demand for memory in the AI era鈥� as it gave a progress update on construction in central New York of what it says is the largest semiconductor manufacturing site in U.S. history.
Such stocks have become some of Wall Street鈥檚 most influential after growing so big in the euphoria around AI. But AI stocks have also come under because of worries their prices shot too high and that AI may not create enough productivity and profits to make all the investments in chips and data centers worth it.
Stocks broadly got some help from falling yields in the bond market. The yield on the 10-year Treasury fell to 4.53% from 4.56% late Wednesday.
It had been climbing on worries about high oil prices and the potential for higher interest rates, which cranked up the pressure on stocks and prices for other investments.
Besides the war with Iran, another big event for Wall Street is the upcoming start of earnings reporting season for companies. Next week, the biggest banks are set to unveil how much profit they made from April through June. Companies across industries will need to report strong growth to justify the big moves their stock prices have made.
PepsiCo fell 3.8% even though it reported slightly better revenue for the latest quarter than analysts expected. Numbers released by the company behind Gatorade and Doritos showed weakening trends in its North American food and drinks businesses.
In stock markets abroad, indexes rose across much of Europe and Asia.
Besides Seoul鈥檚 climb, stock indexes rose 1.7% in Shanghai and 0.9% in Paris.
On the losing end was Hong Kong鈥檚 Hang Seng, which slipped 0.7% as shares of Apple supplier Luxshare fell 1.5% in its trading debut.
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AP Business Writers Chan Ho-him and Matt Ott contributed to this report.
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