Wall Street inched toward modest gains in premarket trading Friday as bond yields steadied even though oil prices rose with no signs of progress in ending the Iran war.
Futures for the S&P 500 rose 0.2 per cent before the opening bell, as did Nasdaq futures. Dow Jones Industrial Average futures were up 0.3 per cent.
Oil prices remained elevated over disruptions around the Strait of Hormuz, a critical waterway for oil and gas transit, with shipping activities still well below before the Iran war began in late February. Talks between the U.S. and Iran have dragged on, adding to uncertainty.
Brent crude, the international standard, gained US$1.86 to US$104.44 a barrel. It was trading around US$70 per barrel in February before the war’s start. Benchmark U.S. crude rose US$1.09 to US$97.44 a barrel.
On Thursday, Republicans in Congress delayed until June planned votes on dismissing legislation that would compel U.S. President Donald Trump to withdraw from the war.
The House had scheduled a Thursday vote on a war powers resolution brought by Democrats that would rein in Trump’s military campaign. But as it became clear that Republicans would not have the numbers to defeat the bill, GOP leaders declined to hold a vote on it.
“Markets are still searching for signs of progress in a potential deal between the U.S. and Iran,” ING commodities strategists Warren Patterson and Ewa Manthey wrote in a note on Friday. “While there are signs of optimism, uncertainty reigns.”
The yield on the U.S. 10-year Treasury was at 4.55 per cent, down from more than 4.67 per cent earlier in the week, when higher global inflationary pressures stemming from the war fueled a surge in bond yields.
Earlier this week, yields climbed so high they threatened to slow economies worldwide and undercut prices for stocks, bitcoin and all kinds of other investments.
In equities trading Friday, Estee Lauder soared 13 per cent after the New York cosmetics giant announced that it was no longer in talks to combine with the Spanish fragrance and beauty products company Puig.
Ross Stores jumped 5.8 per cent after it beat Wall Street’s first-quarter profit targets while logging a 21 per cent increase in sales over the same period last year. The company credited increased store traffic, ongoing marketing initiatives and consumers spending more due to tax refunds.
At midday in Europe, Britain’s FTSE 100 was up 0.3 per cent, France’s CAC 40 gained 0.4 per cent and Germany’s DAX climbed 0.8 per cent.
In Asia, Tokyo’s Nikkei 225 rose 2.7 per cent to 63,339.07, besting a record high close just over a week earlier. A report showed inflation hitting a four-year low in April, at 1.4 per cent, despite higher prices for oil and gas due to the war.
South Korea’s Kospi gained 0.4 per cent to 7,847.71.
Hong Kong’s Hang Seng picked up 0.9 per cent to 25,606.03, while the Shanghai Composite index climbed 0.9 per cent to 4,112.90.
Australia’s S&P/ASX 200 gained 0.4 per cent to 8,657.00.
Taiwan’s Taiex closed 2.2 per cent higher, while India’s Sensex rose 0.6 per cent
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AP Business Writers Matt Ott and Stan Choe contributed.
Chan Ho-him, The Associated Press
