US close: Stocks post tentative gains as oil prices drop, PCE report eyed

(Sharecast News) - US stocks finished marginally higher on Wednesday after swinging between gains and losses for most of the session, as investors watched developments in the Middle East with bated breath.

The Dow rose 0.36%, while the S&P 500 and Nasdaq settled just 0.02% and 0.07% higher, respectively.

Oil prices slid following a report that Iran is committed to restoring the number of commercial transit ships through the Strait of Hormuz to pre-war levels within a month. WTI crude dropped 5.5% to $88.68 a barrel and Brent settled 5.3% lower at $94.29, with both finishing at their lowest since 17 April.

According to Reuters, citing Iran's state TV, Tehran has obtained a draft of an initial unofficial framework for a memorandum of understanding with the US. Under the framework, Iran would restore commercial shipping through the Strait of Hormuz to pre-war levels within a month, while the US would withdraw military forces from Iran's vicinity and lift a naval blockade.

Eyes now turn to Thursday's key inflation reading for April, with the core PCE index expected to rise to 3.3% from 3.2%. According to market commentator Stephen Innes, however, even another leg down in oil prices might not be enough to dissuade the Federal Reserve from hiking interest rates.

"Lower oil prices are no longer automatically delivering a dovish Fed narrative because inflation pressures have already spread deep into the broader economy through logistics, wages and inflation psychology," he said.

"[Thursday's] PCE report matters because markets are increasingly debating whether the Fed may eventually remove its easing bias altogether rather than simply delaying cuts. Hence, traders quietly began reducing exposure ahead of [the] PCE inflation report."

In equity news, Micron Technology continued to draw an amount of investor, jumping nearly 10%, extending a remarkable run that saw the memory‑chip maker surge 19% on Tuesday and break through the $1trn valuation mark for the first time. Micron, whose shares have more than tripled this year, was boosted further after UBS suggested the stock could more than double again as long‑term supply agreements tied to AI adoption begin to take hold.

Shares in Abercombie & Fitch surged 9% after the American apparel group beat profit expectations with its first-quarter results, with sales rising despite weakness in some regions.

Dick's Sporting Goods slumped 6% after cutting its full‑year profit guidance as margin headwinds linked to its Foot Locker acquisition weighed on earnings, even as demand for sneakers and apparel supported quarterly sales.

On the macro front, US mortgage applications fell by 8.5% in the week ended 22 May, according to the Mortgage Brokers Association, with climbing interest rates weighing on demand. Applications to refinance a mortgage, which are more sensitive to week-to-week interest rate changes, slumped 18% week-on-week, while applications to purchase a home dropped just 0.4%. Last week's moves came as the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances hit 6.65%, up from 6.56%. The 30-year fixed rate has risen by 30 basis points over the last five weeks to hit its highest level since August 2025.

On another note, the Richmond Federal Reserve's manufacturing index increased to 13 points in May, up from a reading of 3 in April, as all three of its component indices rose. Shipments jumped to 16 from −2, while new orders rose to 17 from 8, and employment improved to 3 from 0. The future indices for shipments and new orders increased further into positive territory, while thte expectations index for employment rose to 23 from 7. The local business conditions index, on the other hand, decreased to 5 in May from 10 in April. However, the future local business conditions index rose to 17 from 3.

Dow Jones - Risers

Procter & Gamble Co. (PG) $147.49 3.17%

Boeing Co. (BA) $224.30 2.47%

Home Depot Inc. (HD) $317.85 2.35%

Nike Inc. (NKE) $45.98 2.31%

Unitedhealth Group Inc. (UNH) $384.01 1.90%

International Business Machines Corporation (CDI) (IBM) $255.20 1.80%

Coca-Cola Co. (KO) $81.62 1.44%

Walt Disney Co. (DIS) $104.18 0.87%

3M Co. (MMM) $155.17 0.74%

Cisco Systems Inc. (CSCO) $119.67 0.73%

Dow Jones - Fallers

JP Morgan Chase & Co. (JPM) $299.28 -2.43%

Dow Chemical Co. (DOW) $34.49 -2.24%

Travelers Company Inc. (TRV) $299.94 -1.61%

Amgen Inc. (AMGN) $336.06 -1.34%

Chevron Corp. (CVX) $182.40 -1.25%

Salesforce.Com Inc. (CRM) $177.51 -0.88%

Microsoft Corp. (MSFT) $412.67 -0.87%

Verizon Communications Inc. (VZ) $48.24 -0.52%

S&P 500 - Risers

Bath & Body Works, Inc. (BBWI) $19.45 9.70%

Micron Technology Inc. (MU) $928.41 9.47%

MGM Resorts International (MGM) $41.95 9.10%

CenturyLink Inc. (LUMN) $10.87 6.88%

United Airlines Holdings Inc (UAL) $112.62 6.78%

Norwegian Cruise Line Holdings Ltd (NCLH) $18.15 6.14%

Coty Inc. Class A (COTY) $2.15 5.91%

Advance Auto Parts (AAP) $58.26 5.68%

General Motors Corp (GM) $84.12 5.43%

Aptiv PLC (APTV) $61.90 5.34%

S&P 500 - Fallers

Boston Scientific Corp. (BSX) $50.46 -12.46%

Coterra Energy Inc. (CTRA) $32.56 -8.62%

FMC Technologies Inc. (FTI) $67.41 -5.60%

Rollins Inc. (ROL) $50.38 -5.23%

Apache Corp. (APA) $36.62 -5.18%

Intuitive Surgical Inc. (ISRG) $418.55 -4.91%

eBay Inc. (EBAY) $110.36 -4.72%

Raymond James Fin Corp. (RJF) $145.40 -4.42%

Skyworks Solutions Inc. (SWKS) $78.68 -4.40%

Helmerich & Payne Inc. (HP) $38.49 -4.37%

Nasdaq 100 - Risers

Micron Technology Inc. (MU) $928.41 9.47%

Illumina Inc. (ILMN) $150.17 5.18%

Mercadolibre Inc. (MELI) $1,696.17 4.48%

Meta Platforms Inc. (META) $635.26 4.45%

Seagate Technology Plc (STX) $870.66 4.36%

Marriott International - Class A (MAR) $385.86 4.01%

Wynn Resorts Ltd. (WYNN) $101.22 3.58%

Western Digital Corp. (WDC) $530.60 3.49%

Expedia Group Inc. (EXPE) $226.56 3.37%

Cognizant Technology Solutions Corp. (CTSH) $53.16 3.02%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

Intuitive Surgical Inc. (ISRG) $418.55 -4.91%

eBay Inc. (EBAY) $110.36 -4.72%

Skyworks Solutions Inc. (SWKS) $78.68 -4.40%

QUALCOMM Inc. (QCOM) $233.40 -3.28%

Biomarin Pharmaceutical Inc. (BMRN) $52.38 -2.68%

Regeneron Pharmaceuticals Inc. (REGN) $627.74 -2.57%

DENTSPLY Sirona Inc. (XRAY) $10.00 -2.39%

Asml Holdings N.V. (ASML) $1,597.87 -2.23%

Take-Two Interactive Software Inc. (TTWO) $218.46 -2.19%