Financial Markets                      04/27 15:28

   

   NEW YORK (AP) -- The U.S. stock market's record-breaking rally slowed on 
Monday after uncertainty rose over the weekend about what will happen next in 
the Iran war, while oil prices rose.

   The S&P 500 inched 0.1% higher to its latest all-time high, a downshift 
following weeks of big gains driven by strong corporate profit reports and 
hopes that the economy can avoid a worst-case scenario because of the war. The 
Dow Jones Industrial Average dipped 62 points, or 0.1%, while the Nasdaq 
composite rose 0.2% to its own record.

   The moves were stronger in the oil market, where prices climbed more than 
2.5% as tankers find the Strait of Hormuz still effectively closed. That's 
keeping crude stuck in the Middle East and away from customers worldwide, 
including oil produced by Iran that's being blockaded by the U.S. Navy.

   Iran has offered to reopen the strait if the United States ends its 
blockade, while proposing that discussions on the larger question of its 
nuclear program would come in a later phase. But U.S. President Donald Trump 
seems unlikely to accept the offer, which was passed to the Americans by 
Pakistan.

   Over the weekend, Trump told U.S. envoys not to go to Pakistan, which has 
been playing a crucial mediating role. By saying the Iranians could call 
Washington with any proposal, Trump appeared to signal he's content to try to 
continue to squeeze Iran with the blockade.

   The price for a barrel of Brent crude to be delivered in June climbed 2.8% 
to settle at $108.23. Brent to be delivered in July, which is where more of the 
trading is happening in the oil market, rose 2.6% to $101.69 per barrel.

   Brent prices were at only about $70 per barrel before the war and have 
briefly shot to nearly $120 a couple times when fears about the war have hit 
their heights.

   Even with more expensive fuel bills, most big U.S. companies have 
nevertheless been reporting profit growth for the start of 2026 that's even 
stronger than analysts expected. That in turn has helped the S&P 500 jump 13% 
since hitting a low in late March.

   This upcoming week could be a blockbuster for the market, with several of 
Wall Street's most influential stocks scheduled to deliver their profit 
reports. Alphabet, Amazon, Meta Platforms and Microsoft are all scheduled to 
report on Wednesday alone. Apple will report on Thursday.

   Verizon Communications joined the list of companies topping analysts' 
expectations on Monday, and its stock rose 1.5% after the company said it added 
more postpaid phone customers than it lost during a first quarter for the first 
time since 2013. It also raised its forecast for profit growth this year, even 
though its revenue for the first quarter fell short of analysts' expectations.

   Domino's Pizza helped drag on the market and fell 8.8% after it reported 
weaker profit and revenue for the latest quarter than analysts expected.

   All told, the S&P 500 rose 8.83 points to 7,137.91. The Dow Jones Industrial 
Average dipped 62.92 to 49,167.79, and the Nasdaq composite rose 50.50 to 
24,887.10.

   In the bond market, Treasury yields ticked higher following the rise in oil 
prices. The yield on the 10-year Treasury note rose to 4.33% from 4.31% late 
Friday.

   The Federal Reserve will announce its latest move on short-term interest 
rates Wednesday, and the consensus expectation among traders is that it will 
hold the federal funds rate steady. Lower rates would give the economy a boost, 
but they would also threaten to worsen inflation when oil is more expensive and 
tariffs are threatening to raise prices for all kinds of other products.

   Wednesday will likely be the final meeting where Chair Jerome Powell will 
lead the Fed. His term as chair is scheduled to expire next month, and Trump 
has already named a nominee to replace him, Kevin Warsh.

   The European Central Bank, Bank of Japan and Bank of England will also be 
announcing their own interest-rate decisions this week.

   In stock markets abroad, indexes slipped in Europe following a stronger 
finish in Asia. South Korea's Kospi jumped 2.2%, and Japan's Nikkei 225 rose 
1.4% for two of the world's bigger moves.

   ___

   AP Business Writers Matt Ott and Elaine Kurtenbach contributed to this 
report.

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