US stocks swing from losses to small gains following the latest reversal for oil prices

NEW YORK (AP) — Hour-to-hour swings for oil prices keep jerking financial markets around, and U.S. stocks are drifting higher Thursday following the latest reversal.

The S&P 500 rose 0.3% and inched closer to its all-time high set last week. The Dow Jones Industrial Average was up 299 points, or 0.6%, as of 2 p.m. Eastern time, and the Nasdaq composite was 0.4% higher.

All three measures of U.S. stocks erased early drops following the latest 180-degree swing for oil prices. The price for a barrel of Brent crude oil briefly climbed above $109 in the morning, threatening to worsen the world's already high inflation, before it quickly erased all its gains in midday trading and then fell 2.1% to $102.81.

Oil prices have been yo-yoing because of uncertainty about how long the war with Iran will keep the Strait of Hormuz shut. The closure has prevented oil tankers from exiting the Persian Gulf to deliver crude to customers worldwide, driving up oil's price.

As oil prices eased Thursday, so did pressure on Wall Street that's been building from the bond market.

Yields have climbed so high recently that they've cranked up the pressure on financial markets worldwide. They've already forced the average long-term U.S. mortgage rate to its most expensive level since last summer, and they could curtail companies’ borrowing to build the AI data centers that have been supporting the U.S. economy’s growth recently.

The yield on the 10-year Treasury briefly got near 4.63% in the morning before falling back to 4.55% following the midday reversal for oil prices. That's down from 4.57% late Wednesday and from 4.67% the day before.

Some of the biggest benefits of lower yields can go to the smallest companies, many of which need to borrow money to grow. The Russell 2000 index of the smallest U.S. stocks jumped 0.9%, more than the rest of the market.

Stocks of companies with big fuel bills also rose because of the easing of oil prices. Southwest Airlines climbed 2.4%, and Delta Air Lines added 1.6%.

Ralph Lauren jumped 14.9% after reporting stronger profit and revenue for the latest quarter than analysts expected.

They helped offset a 1% drop for Nvidia, which is one of Wall Street's most influential stocks because of its immense size.

The chip company reported stronger profit and revenue for the latest quarter than analysts expected, while also forecasting revenue for the current quarter that cleared analysts’ estimates. “The buildout of AI factories — the largest infrastructure expansion in human history — is accelerating at extraordinary speed,” CEO Jensen Huang said.

But such performances and such talk have become routine, and Nvidia's stock swiveled between losses and gains before falling.

Some analysts said the weakness may have simply been because investors were locking in profits after Nvidia’s stock had soared nearly 70% over the prior year, more than double the S&P 500’s 27% jump. The broad AI industry is also getting criticism for becoming too expensive, as well as too circular as Nvidia has bought ownership stakes in companies that use its own chips that drive Nvidia’s revenue.

Walmart also fell, 6.8%, following its profit report. The retailer delivered another quarter of impressive revenue but offered up weaker forecasts for upcoming profit than analysts expected.

In stock markets abroad, indexes were mixed in Europe following bigger moves in Asia.

South Korea’s Kospi Kospi soared 8.4% thanks to strength for technology stocks. Samsung Electronics jumped 8.5% after its labor union and management reached an agreement late Wednesday that averted a strike. SK Hynix, a chip company partnering with Nvidia, surged 11.2%.

Tokyo’s Nikkei 225 jumped 3.1%, while indexes fell 1% in Hong Kong and 2% in Shanghai.

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AP Business Writers Matt Ott and Elaine Kurtenbach contributed.