More jumps for oil prices shook parts of U.S. financial markets Wednesday, while major stock indexes stayed close to their records after a wave of earnings helped counterbalance the pressure from higher energy costs and rising rates. Brent crude continued to drive trading, with the latest session sending tremors through the bond market and changing expectations about when the Federal Reserve might cut interest rates.
Oil’s move was especially pronounced in the Brent market, where most of the trading activity is centered. Brent crude for delivery in July jumped 5.8% to settle at $110.44 per barrel, after rising as high as $111.84 later in the day. The highest price since the war with Iran began is $119.50 for the most actively traded Brent contract, reached last month, and on Wednesday the market briefly breached that level again in the June-delivery contract before moving back.
The article linked the oil strength to the Iran conflict and shipping conditions. Oil prices have jumped this week as President Donald Trump appears willing to maintain the U.S. blockade of Iranian ships, a policy that would prevent Iran from earning money through oil sales, while Iran keeps the Strait of Hormuz closed to other oil tankers trying to reach customers worldwide during the blockade.
Against that backdrop, the Federal Reserve said it will continue to hold off on cutting interest rates. The Fed’s decision announcement came with additional detail from three officials, who were described as not wanting to include wording in the statement that would suggest more cuts may be coming. The Fed’s stance reflected a tradeoff: lower rates could support the economy, but they could also worsen inflation, according to the reporting.
Treasury yields rose immediately after the Fed announcement and added to earlier gains tied to the oil-price jump. The yield on the 10-year Treasury rose to 4.41% from 4.36% late Tuesday. The two-year yield, which more closely tracks market expectations for Fed action, climbed to 3.93% from 3.84%, the report said.
In equities, the S&P 500 slipped but remained near record highs, finishing down less than 0.1% to 7,135.95. The Dow Jones Industrial Average dropped 280.12 points, or 0.6%, to 48,861.81, while the Nasdaq composite added 9.44 points to 24,673.24. The bond-market pressure did not prevent stocks from holding firm in part because more companies reported profit growth for the start of 2026 that was stronger than analysts had expected.
Earnings gave a lift to several large consumer-facing firms. Visa jumped 8.3% after posting results that beat analysts’ expectations, with CEO Ryan McInerney saying consumer spending remained resilient in the quarter. Starbucks rose 8.4% after it reported results that also came in ahead of expectations and said customers spent more at each visit, particularly at its North American stores.
The session also showed losses for companies that missed forecasts. GE HealthCare Technologies fell 13.2% after missing analysts’ forecasts, and Robinhood Markets sank 13.2% after reporting growth in profit that was not as strong as analysts expected. Booking Holdings swung between gains and losses and ended up 0.3% higher after reporting better results than analysts expected; the company said the war with Iran was affecting its results and kept some potential customers from booking rooms during the quarter.
Booking’s outlook pointed to continuing spillovers from the conflict, with the company behind Booking.com and Priceline saying it expects the conflict to keep affecting its business through the end of June. The reporting said the impact could extend beyond the Middle East to major transit corridors between Europe and Asia.
In markets abroad, indexes fell in Europe after a stronger finish in Asia. Hong Kong’s Hang Seng rose 1.7%, while London’s FTSE 100 fell 1.2%.