Financial Markets                      05/26 16:54

   

   NEW YORK (AP) -- The U.S. stock market rose to records Tuesday as it caught 
up with climbs for others around the world from the day before, when President 
Donald Trump said negotiations were "proceeding nicely" with Iran on ending 
their war.

   The S&P 500 climbed 0.6% after trading resumed following Monday's holiday 
and set an all-time high. The Nasdaq composite rallied 1.2% to set its own 
record, while the Dow Jones Industrial Average dipped 118 points, or 0.2%, from 
its all-time high.

   Stock markets in much of the rest of the world pulled back from their gains 
the day before, as fighting continued in the region and the U.S. military said 
it carried out "self-defense" strikes in southern Iran, including on missile 
launch sites and boats placing mines. Markets have rallied in the past on hopes 
for a coming end to the war with Iran, only to see the conflict drag on.

   The price for a barrel of Brent crude, the international standard, rose 3.5% 
to $96.67, but that reclaimed only some of its plunge from Monday. The price 
for a barrel of U.S crude oil, meanwhile, fell 2.8% to settle at $93.89.

   Oil prices have been at the center of financial markets' action since the 
United States and Israel attacked Iran in late February. The ensuing war has 
closed the Strait of Hormuz and kept oil tankers pent up in the Persian Gulf 
instead of delivering crude to customers worldwide. That in turn has driven up 
oil's price and sent a wave of painful inflation around the world.

   Hopes for a deal to improve the flow of oil helped lift stocks of companies 
with big fuel bills. United Airlines rose 6%, and Norwegian Cruise Line 
Holdings steamed 4.9% higher.

   Big technology stocks also continued their big runs. Micron Technology's 
stock leaped 19.3% to top $895.88 and was the strongest force lifting the S&P 
500 after analysts at UBS led by Timothy Arcuri raised their 12-month price 
target for the stock to $1,625 from $535.

   The analysts are forecasting continued strength in demand for computer 
memory, and Micron's stock has already more than tripled so far this year. It's 
the latest Big Tech company to top an overall value of $1 trillion and joined 
such behemoths as Nvidia, Apple and Microsoft, which have each blown past $3 
trillion.

   On the losing side of Wall Street was AutoZone, which dropped 9% after 
reporting slightly weaker revenue for the latest quarter than analysts 
expected. CEO Phil Daniele said performance for the retailer's stores in Brazil 
and Mexico was below its plan, though its overall profit topped analysts' 
expectations.

   All told, the S&P 500 rose 45.65 points to 7,519.12. The Dow Jones 
Industrial Average dipped 118.02 to 50,461.68, and the Nasdaq composite climbed 
312.21 to 26,656.18.

   Lower oil prices helped pull yields down in the U.S. bond market, which 
eased the pressure on Wall Street. The yield on the 10-year Treasury fell to 
4.49% from 4.56% late Friday.

   It's a respite following recent gains for yields in bond markets worldwide, 
which threatened to slow economies and undercut prices for stocks and all kinds 
of other investments. High yields have already forced the average long-term 
U.S. mortgage rate to its most expensive level since last summer, and they 
could curtail companies' borrowing to build the artificial-intelligence data 
centers that have supported the U.S. economy's growth recently.

   Most big U.S. companies have been reporting both profit and revenue for the 
start of 2026 above what analysts expected. The strong performances have helped 
vault U.S. stocks to records, even with all the uncertainty around oil prices 
and the war with Iran.

   U.S. households have been feeling discouraged about the economy because of 
accelerating inflation, and a report on Tuesday said consumer confidence edged 
downward in May, though the number was not as bad as economists expected. It 
followed a report on Friday that said sentiment among U.S. consumers hit its 
lowest level on record.

   In stock markets abroad, many indexes slipped, including a 0.2% dip for 
Japan's Nikkei 225 from its all-time high set the day before.

   South Korea's Kospi jumped 2.5% as it caught up with other markets following 
its closure on Monday for a holiday. London's FTSE 100 added 0.2% even though 
British petroleum giant BP fell 4% there. BP ousted its chairman over what it 
called serious concerns related to "important governance standards, oversight 
and conduct."

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   AP Business Writer Elaine Kurtenbach contributed to this report.

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