The S&P 500 added 0.6% to its all-time high set the day before after drifting between small gains and losses in the morning. The Dow Jones Industrial Average rose 24 points or less than 0.1% and the Nasdaq composite climbed 0.9% as both indexes also set records.

Stocks turned higher after oil prices retreated from morning gains, following reports of a tentative U.S.-Iran agreement still awaiting President Trump's approval. Benchmark U.S. crude settled at $88.90 per barrel, pulling back from an overnight high above $92.50. Oil prices have been volatile as hopes fluctuate over a potential deal to reopen the Strait of Hormuz and restore Persian Gulf crude flows. The swings have been significant enough that a Thursday report showed U.S. inflation accelerating to its worst level in three years.

Despite concerns over costly oil and elevated inflation, the U.S. stock market has continued rallying to record highs on the strength of corporate earnings. Companies have been consistently exceeding analysts' expectations for Q1 2026, reinforcing investor confidence. Since stock prices tend to follow corporate profit trends over the long term, strong earnings have outweighed broader economic anxieties. The resilience of American businesses remains the key driver keeping markets buoyant amid an uncertain macro backdrop.

Dollar Tree's stock soared 17.9% after it became the latest to report fatter profit than analysts expected. CEO Mike Creedon said improved store conditions helped the retailer make more profit off each $1 in sales during the latest quarter despite tariffs adding to its costs. The company also gave a forecast for profit over the full year that topped analysts' expectations. Kohl's rallied 20.6% after the retailer reported better results for the latest quarter than analysts had feared, while Best Buy climbed 15.8% following its own better-than-expected profit report. Hormel Foods climbed 12.5% after a strong performance for its Jennie-O ground turkey and exports of Spam luncheon meat helped it report a better profit than analysts expected. Snowflake rose 36.5% after saying artificial intelligence continues to be a strong driver for its business and profit and revenue for the latest quarter exceeded expectations.

In stock markets abroad, indexes dipped across much of Europe and Asia. Hong Kong's Hang Seng fell 1.3% for one of the world's larger losses.

In the bond market, Treasury yields eased after oil prices gave up much of their gains and reduced the upward pressure on inflation. The yield on the 10-year Treasury fell to 4.45% from 4.48% late Wednesday. High yields in bond markets worldwide recently have 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 in nine months, and they could curtail companies' borrowing to build the AI data centers that have supported the U.S. economy's growth recently.

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