The U.S. stock market stayed relatively steady on Wednesday even as oil prices pushed higher again during the war with Iran, a shift that has repeatedly rattled markets when energy moves abruptly. Stocks opened the day in a calmer posture than investors had recently faced, with the S&P 500 slightly lower for a second day of modest changes after a prior stretch marked by larger swings.
On the index level, the S&P 500 fell by 5.68 points to 6,775.80. The Dow Jones Industrial Average dropped 289.24 points, or 0.6%, to 47,417.27, while the Nasdaq Composite rose 19.03 points, or 0.1%, to 22,716.13.
Oil prices moved higher as the outlook for crude shipments through the Strait of Hormuz remained a central concern for energy markets. The Strait is a narrow waterway off Iran’s coast where a fifth of the world’s oil sails on a typical day, and the war had halted most of the traffic, leaving crude storage tanks in the region filling up. That bottleneck, in turn, has helped drive warnings from oil producers that they may cut output.
Brent crude, the international benchmark, rose 4.8% to settle at $91.98, according to AP. U.S. benchmark crude gained 4.6% to $87.25.
The International Energy Agency said Wednesday that its members will release a record amount of oil—400 million barrels—from stockpiles set aside for emergencies. The agency’s action could push prices down in the near term, AP reported, but investors focused on whether supplies from the Persian Gulf area could return fully to ease the market over time.
Inflation concerns added another layer to investor thinking. AP reported that a U.S. report released Wednesday showed consumers paid prices for groceries, gasoline and other costs of living that were 2.4% higher in February than a year earlier. The inflation rate matched the prior month and was better than what economists expected, but remained above the Federal Reserve’s 2% target, and the data did not include the energy-driven gasoline spike that occurred during the war.
Gary Schlossberg, a global strategist at Wells Fargo Investment Institute, said the inflation backdrop could include a “spring bulge” tied to the spike in energy prices connected to the Iran war, with how inflation lands by year end depending on how long the conflict lasts. AP framed those risks as part of a broader fear scenario in which higher oil prices combine with economic weakness—what is sometimes described as stagflation.
Wall Street’s moves also reflected corporate earnings. Campbell’s shares sank 7.1% after the soup company reported weaker quarterly profit than analysts expected, hurt by challenges in its snack business and by cuts to its forecasts for revenue and profit for the fiscal year.
Oracle helped limit losses, jumping 9.2%. AP reported that the tech company posted stronger profit and revenue than analysts expected and raised its forecast for revenue growth next fiscal year, attributing part of the outlook to demand for cloud computing for artificial-intelligence training and inferencing.
The day’s broader market signal extended beyond stocks. AP reported that Treasury yields rose as higher oil prices exerted upward pressure, with the 10-year Treasury yield climbing to 4.22% from 4.15% late Tuesday—an increase that can weigh on other investments by lifting borrowing costs and discount rates. Trading expectations also shifted, with oil-price moves leading some traders to push back forecasts for when the Federal Reserve could resume interest-rate cuts—an issue President Donald Trump has pressed, AP reported, as he has argued for cuts that could support jobs and growth while potentially worsening inflation.
In markets abroad, indexes fell in Europe after better performance in Asia. Germany’s DAX fell 1.4%, while Japan’s Nikkei 225 rose 1.4%, AP reported, as global investors tracked the same questions affecting oil and inflation expectations.