Major U.S. stock averages rose but closed off their highs of the session as oil prices rose. The S&P 500 finished the session about 0.3% higher, and the Nasdaq Composite climbed nearly 0.5%. The Dow added 46.85 points (0.1%).
The driver for markets once again was the price of oil. Crude oil prices continued their climb, with West Texas Intermediate futures advancing nearly 3% to close at $96.21. Brent futures advanced 3.2% to settle at $103.42 — the highest close since August 2022. A wave of Iranian attacks on the United Arab Emirates’ energy infrastructure also sparked fears about crude and fuel shipping.
Investors are now looking ahead to the Fed’s interest rate decision expected on Wednesday. Markets are expecting the central bank to keep interest rates unchanged in a range between 3.5% to 3.75%. Traders will be watching for any guidance from Fed Chair Jerome Powell on whether oil prices could impact future monetary policy. In addition to the upcoming Fed decision, traders are also awaiting the producer price index reading for February.
With respect to earnings, Micron Technology the chipmaker is slated to release its latest quarterly results after the bell Wednesday. Exports had risen 16.8% jump in the previous month. Stocks of companies with big fuel bills helped lead the market thanks to falling oil prices. Norwegian Cruise Line Holdings steamed 5.1% higher, while United Airlines climbed 4.2% to trim their big losses for the year so far. Dollar Tree rose 6.4% after reporting a stronger profit for the latest quarter than analysts expected, even as fewer shoppers visited its stores.
Nebius Group, a Dutch AI cloud company, saw its stock that trades in the United States leap 15% after announcing a five-year infrastructure contract with Meta Platforms that could be worth up to $27 billion. Nvidia rose 1.6% as its CEO Jensen Huang talked up the tech’s possibilities at an AI conference and said he foresaw $1 trillion in demand for AI chips through 2027. It was the strongest single force lifting the S&P 500.
In stock markets abroad, indexes rose modestly in Europe, including a 0.5% return for Germany’s DAX, following a mixed finish in Asia. Japan’s Nikkei 225 jumped 1.91%, while the Topix added 0.95% after the country reported that exports climbed 4.2% from a year ago in February, beating estimates. Hong Kong Hang Seng index climbed 0.3%, while the CSI 300 inched 0.13% higher.
In the bond market, Treasury yields eased as falling oil prices took some pressure off inflation worries. A report showing a weakening of manufacturing activity in New York state also weighed on yields.