Oil Prices Boost US stocks

New York Stock Exchange is experiencing a volatile trading session, with Wall Street indices opening lower amid escalating tensions in the Middle East, fueled by ongoing Israeli military operations in southern Lebanon. Economic data released on U.S. labor market conditions indicated a continued improvement in job growth, a trend the Federal Reserve has been trying to foster for years until its recent policy shift.

Wednesday’s initial jobless claims data helped U.S. stocks regain upward momentum. The Fed and its Chairman, Jerome Powell, have expressed support for the labor market following the moderation of inflation, suggesting that the central bank’s efforts are starting to pay off. This prompted the Federal Open Market Committee to cut interest rates by 50 basis points at its last meeting.

The surge in global oil prices—driven by the escalating conflict in the Middle East—has boosted energy stocks, thereby supporting the broader U.S. stock market. Tech-heavy Dow Jones Industrial Average climbed to 42,160 points, adding less than 0.1%, while the Nasdaq Composite rose to 17,933 points, gaining approximately 0.2%. However, the S&P 500 retreated to 5,707 points, shedding less than 0.1%.