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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 (0.2%) from its all-time high. Stock markets across much of the world pulled back Tuesday as fighting continued in the region and the U.S. military carried out self-defense strikes in southern Iran, targeting missile launch sites and boats placing mines. Markets had previously rallied on hopes the conflict would soon end, only to see it drag on. Brent crude rose 3.5% to $96.67, though that reclaimed only a portion of Monday's sharp plunge. The war which began when the U.S. and Israel attacked Iran in late February, has closed the Strait of Hormuz and trapped oil tankers in the Persian Gulf, cutting off crude deliveries worldwide. This supply disruption has driven oil prices sharply higher, sending a wave of painful inflation across the global economy. U.S. crude, meanwhile, bucked the trend, falling 2.8% to settle at $93.89 a barrel. Bond market yields have eased slightly, offering a brief respite after recent gains that threatened to slow economies and weigh on stocks and other investments. High yields have already pushed the average long-term U.S. mortgage rate to its most expensive level since last summer, and could curtail corporate borrowing for AI data centers ' a key driver of recent U.S. economic growth. Despite this, most major U.S. companies have reported profit and revenue for early 2026 above analyst expectations, helping vault U.S. stocks to record highs even amid oil price uncertainty and the ongoing war with Iran. On the consumer front, U.S. households have grown increasingly discouraged due to accelerating inflation, with a Tuesday report showing consumer confidence edged lower in May ' though the reading came in better than economists had feared. This followed a Friday report showing U.S. consumer sentiment had fallen to its lowest level on record. The conflicting signals paint a picture of an economy still growing on paper, but facing mounting pressure from inflation, rising borrowing costs, and geopolitical instability. 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. AutoZone 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. 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.' 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. Powered by Capital Market - Live News
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