Wall Street Sets New Record, Oil Prices Fall Sharply
US stocks closed higher on Tuesday (May 5), while oil prices weakened, as market participants responded to a number of solid corporate earnings reports. The S&P 500 index rose 0.81% to close at a new record high of 7,259.22. The Nasdaq Composite gained 1.03% to also set a record close at 25,326.13. The Dow Jones Industrial Average added 356.35 points, or 0.73%, to 49,298.25.
The decline in oil prices also boosted stock market sentiment. West Texas Intermediate (WTI) futures fell 3.9% to close at US$102.27 per barrel, while Brent fell nearly 4% to US$109.87 per barrel. The weakening energy prices helped ease inflation concerns that had previously weighed on the market.
The ceasefire between the US and Iran remains fragile amid the recent incident in the Strait of Hormuz. However, US Defense Secretary Pete Hegseth confirmed that the agreement remains in effect. He stated that two US commercial vessels and a Navy destroyer had safely passed through the strait, indicating the shipping lane remains open. This statement bolstered market confidence that the risk of immediate escalation is mitigated.
On the corporate side, several issuers reported quarterly results that exceeded expectations. DuPont de Nemours shares jumped about 8% after posting better-than-expected first-quarter earnings and revenue. US-listed shares of Anheuser-Busch InBev also rose more than 8% thanks to strong performance.
However, Palantir Technologies was an exception. Its shares fell nearly 7% despite posting its fastest revenue growth since its IPO and raising its annual performance forecast. Overall, about 85% of companies in the S&P 500 index that have released earnings so far have reported results above market expectations, according to FactSet data. (Arl)*
Source: Newsmaker.id
