U.S. stock markets advanced on Thursday, approaching record highs as oil prices surged following President Donald Trump’s announcement of new sanctions targeting Russia’s crude industry.
The S&P 500 increased by 0.6%, moving within 0.2% of its all-time high set earlier in the month. The Dow Jones Industrial Average rose by 144 points, or 0.3%, ending just below its recent record, while the Nasdaq composite gained 0.9%.
Oil and gas companies were among the top performers, with Exxon Mobil up 1.1%, ConocoPhillips rising 3.1%, and Diamondback Energy climbing 3.4%. These gains coincided with a roughly 5.5% jump in crude oil prices after Trump announced sanctions against Russian firms Rosneft and Lukoil.
According to Trump, “massive” new sanctions have been imposed on Russia’s crude industry in an effort to pressure Russian President Vladimir Putin to end the war with Ukraine. The move is expected to restrict global oil supplies, although oil prices remain down more than 10% for the year despite Thursday’s recovery.
Strong quarterly earnings reports from several major U.S. companies also contributed to market gains as earnings season continues. Dow Inc.’s shares jumped by nearly 13% and Las Vegas Sands rallied over 12% after both posted results that exceeded analysts’ expectations. Tesla shares gained more than 2% after reporting higher-than-expected revenue for the latest quarter despite a weaker profit.
There is continued focus on corporate profits amid concerns that stock valuations may be stretched following significant gains for the S&P 500 since April.
On the downside, Molina Healthcare shares fell sharply—down over 17%—after reporting disappointing quarterly profits due to rising medical costs across the insurance sector, according to CEO Joseph Zubretsky.
IBM’s shares slipped almost one percent despite better overall results; investors focused on underperformance in its Red Hat business segment.
By session close, the S&P 500 was at 6,738.44 points (up by over 39), the Dow Jones at 46,734.61 (up more than 144), and Nasdaq at 22,941.80 (up more than 201).
Gold prices rebounded after recent declines, rising about two percent to $4,145.60 per ounce as ongoing concerns about mounting government debt continue to drive demand for safe-haven assets.
The U.S.’s gross national debt surpassed $38 trillion this week amid fears that further increases could worsen inflation.
In bond markets, yields on ten-year Treasury notes rose slightly ahead of Friday’s delayed inflation report for September—a key indicator that could influence future Federal Reserve interest rate decisions.
Global equity markets showed mixed performance: European indexes climbed while Asian stocks saw varied results—with Hong Kong and Shanghai advancing modestly after China concluded a Communist Party meeting focused on increasing technological self-reliance; Japan’s Nikkei and South Korea’s Kospi both recorded losses.
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