U.S. stocks are holding near record highs as companies like Dollar Tree, Snowflake, and Hormel Foods continue to pile up profits, even as oil prices claw back some of their sharp drops from earlier in the week. The S&P 500 slipped 0.1% in early trading, coming off its latest all-time high set the day before, while the Dow Jones Industrial Average fell 328 points and the Nasdaq composite was 0.2% lower. Both indexes had set records the day before, but the latest session saw a pullback as investors remain cautious amid conflicting reports on a potential U.S.-Iran deal. Despite the pullback, the market's ability to hold near records demonstrates the underlying strength of corporate earnings and investor confidence.
Asian markets opened lower on Thursday, 28 May, as investors weighed mixed developments surrounding the ongoing US-Iran negotiations amid a fragile ceasefire. Japan's Nikkei 225 dropped 0.76%, with the Topix also trading 0.71% lower, while South Korea's Kospi slipped 0.29% and the small-cap Kosdaq index declined 0.25%. Australia's S&P/ASX 200 fell 0.75%, reflecting cautious sentiment as markets await concrete developments in the Middle East peace talks. The Indian stock market will remain closed for trading today on account of Bakrid, with Wednesday's session seeing the Sensex end 142 points, or 0.19%, lower at 75,867.80, while the Nifty 50 slipped 7 points, or 0.03%, to close at 23,907.15.
Stronger-than-expected corporate earnings continue to provide additional support for the market's resilience despite economic pressures from the Iran conflict. Companies like Dollar Tree, Snowflake, and Hormel Foods are among those reporting robust profits that are helping to offset concerns about the war's economic impact. The earnings strength demonstrates the underlying fundamental health of corporate America and the market's ability to focus on company-specific fundamentals rather than geopolitical uncertainties. However, investors remain cautious as conflicting reports on a potential U.S.-Iran deal continue to create uncertainty in the market.
Oil prices have rebounded from their sharp earlier-week drops, with Brent crude rising 2% as the market assesses the ongoing impact of the Iran conflict on global energy markets. The rebound comes as more reports show how the war with Iran is pressuring the economy, creating a complex dynamic where geopolitical tensions drive both supply concerns and economic uncertainty. Despite the rebound, oil prices remain well below their previous highs, reflecting the market's assessment of the ongoing situation and its impact on global energy flows. The mixed signals from oil markets continue to influence investor sentiment as they weigh the potential benefits of a ceasefire for regional stability against ongoing concerns about the conflict's economic impact.
In stock markets abroad, indexes were mixed across Europe and Asia, with South Korea's Kospi emerging as one of the world's best performers and jumping 2.3%. South Korea's strong performance was driven by SK Hynix, which soared 9.3% as a big beneficiary of the AI boom. The broader Asian market performance reflected the mixed sentiment around US-Iran developments, with investors weighing both the potential benefits of a ceasefire for regional stability against concerns about the ongoing negotiations. Asian markets had previously shown mixed performance, with Korea's Kospi up 3.7% and Japan's Nikkei 225 rising 0.4% to hit record highs, while Hong Kong's Hang Seng and China's Shanghai Composite dropped 1.1% and 1.3% respectively.
