Wall Street pulls near its all-time high

NEW YORK (AP) — U.S. stocks rose near their record levels on Wednesday as mixed data on the economy kept alive hopes that a cut to interest rates is coming soon.

The S&P 500 gained 0.3% and pulled within 0.6% of its all-time high set in late October. The Dow Jones Industrial Average climbed 408 points, or 0.9%, and the Nasdaq composite added 0.2%.

The biggest jump in the S&P 500 came from Microchip Technology, which leaped 12.2% after saying it expects sales and profit for the final months of the year to come in at the high end of the forecasted ranges it earlier gave. CEO Steve Sanghi said business is doing better than expected, and it’s reducing inventory levels.

Marvell Technology was another winner and rose 7.9% after the supplier of semiconductor products delivered a stronger profit for the latest quarter than analysts expected. CEO Matt Murphy credited demand for its data center products, while also announcing a purchase of Celestial AI to bolster its artificial-intelligence infrastructure business. The deal’s price tag could top $3.25 billion.

Stocks broadly got a lift from easing Treasury yields in the bond market. Yields fell after a report suggested U.S. employers outside of the government may have cut more jobs in November than they added.

While the surprisingly weak report from ADP may be discouraging for people looking for jobs, it also bolstered expectations that the Federal Reserve will cut its main interest rate next week. If the Fed does, that would be the third cut of the year in hopes of helping the slowing job market.

Investors love lower interest rates because they boost prices for investments and can charge up the economy.

A separate report Wednesday on activity for U.S. services business was more encouraging. It said growth was stronger last month than expected for businesses in the retail, finance, insurance and other industries.

The report from the Institute for Supply Management’s survey also said that prices were increasing at their slowest rate since April. That’s important because the main argument against cutting interest rates is that it could worsen inflation.

The yield on the 10-year Treasury fell to 4.06% from 4.09% late Tuesday.

Lower interest rates can boost prices for all kinds of investments, and bitcoin climbed above $93,000 following its scary downward run in recent weeks. It briefly plunged below $81,000 last month.

On Wall Street, American Eagle Outfitters rallied 15.1% after the retailer reported a better profit than expected. Its CEO, Jay Schottenstein, said it also saw a strong start to the holiday shopping season with an acceleration in demand across its brands during the Thanksgiving weekend.

Capricor Therapeutics surged 371.1% after the biotech company reported encouraging results for its potential therapy for people with Duchenne muscular dystrophy.

On the losing end of Wall Street were relatively few companies, including one out of every three stocks in the S&P 500 index. But among them were some of the market’s most influential stocks, which kept indexes in check.

Microsoft fell 2.5% and was the heaviest weight on the S&P 500.

Macy’s lost 1.1% after flipping between losses and gains through the day. It reported a profit for the latest quarter that was much better than the loss that analysts were expecting, but its stock had already come into the day with a gain for the year so far that more than doubled the S&P 500’s.

All told, the S&P 500 rose 20.35 points to 6,849.72. The Dow Jones Industrial Average added 408.44 to 47,882.90, and the Nasdaq composite gained 40.42 to 23,454.09.

In stock markets abroad, indexes were close to flat in Europe following a mixed finish in Asia.

Japan’s Nikkei 225 jumped 1.1% on gains for technology stocks like Tokyo Electron. SoftBank Group Corp. leaped 6.4% following reports that its founder, Masayoshi Son, regretted having to sell shares in computer chipmaker Nvidia to help pay for other investments.

Chinese indexes sank following the release of data showing weaker factory activity. Stocks fell 1.3% in Hong Kong and 0.5% in Shanghai.

AP Business Writers Matt Ott and Elaine Kurtenbach contributed.

Trader John Romolo works on the floor of the New York Stock Exchange, Tuesday, Dec. 2, 2025. (AP Photo/Richard Drew)

People cross a street near an electronic stock board showing Japan's Nikkei index at a securities firm Tuesday, Nov. 25, 2025, in Tokyo. (AP Photo/Eugene Hoshiko)

Paul Atkins, Chairman of the U.S. Securities and Exchange Commission, poses during a closing bell ceremony outside the Nasdaq MarketSite, Tuesday, Dec. 2, 2025, in New York. (AP Photo/Yuki Iwamura)

Paul Atkins, Chairman of the U.S. Securities and Exchange Commission, speaks during a closing bell ceremony at the Nasdaq MarketSite, Tuesday, Dec. 2, 2025, in New York. (AP Photo/Yuki Iwamura)

A person on a bicycle waits in front of an electronic stock board showing Japan's Nikkei index at a securities firm Monday, Dec. 1, 2025, in Tokyo. (AP Photo/Eugene Hoshiko)

President Donald Trump said U.S. forces will keep hitting Iran “very hard” in the next two or three weeks and bring the country “back to the Stone Ages,” even as he touted the success of U.S. operations and argued that all of Washington’s objectives have so far been met or exceeded.

Trump said Iran would continue to face a barrage of attacks in the short term.

“We are going to hit them extremely hard over the next two to three weeks,” Trump said. “We’re going to bring them back to the Stone Ages, where they belong.”

Trump didn’t say anything about negotiations with Iran or bring up the April 6 deadline he set for Iran to open the Strait of Hormuz, the critical waterway for global oil and gas transport. He has threatened to attack Iran's energy infrastructure if the strait was not reopened.

Trump also did not offer a clear path to end the supply disruptions that have sent energy prices soaring. He did not mention the possibility of sending U.S. ground troops into Iran, or NATO, the trans-Atlantic alliance he has railed against for not helping the U.S. secure the waterway.

Oil rose more than 4% and Asian stocks fell after the comments. Oil prices were sharply higher following Trump’s remarks. Brent crude, the international standard, jumped 4.9% to $106.16 per barrel. Benchmark U.S. crude rose 4% to $104.15 a barrel.

U.S. gas prices jumped past an average of $4 a gallon for the first time since 2022 on Tuesday, as the Iran war continues to push fuel prices higher worldwide. Analysts say those high fuel costs will trickle into groceries as businesses’ transportation and packaging costs pile up.

Here is the latest:

A New York-based think tank said Thursday that U.S. President Donald Trump’s speech suggests he “is willing to leave the Strait of Hormuz off the table, leaving other nations to deal with the consequences.”

“Trump’s message was that the United States can sustain its own economic and energy ecosystem, while countries dependent on regional exports will either have to buy from the United States or manage the Strait themselves,” the Soufan Center wrote.

“While Trump explicitly thanked U.S. allies in the Persian Gulf for their cooperation and allyship, an expedited U.S. withdrawal without securing the Strait will leave many of these countries, whose economies are dependent on energy exports, in the lurch.”

Fuel prices in Thailand soared again on Thursday after the government further cut subsidies, sending diesel price to over 44 baht ($1.35) per liter, about 12% increase.

The surge was the second time in a week, after a majority of fuel prices rose by 6 baht ($0.18) per liter last Thursday.

Democrats are criticizing Trump’s primetime address to the American people on the war in Iran as “incoherent” and as doing little to answer “the most basic questions the American people,” according to statements from two Democratic lawmakers released on Wednesday.

Sen. Mark Warner, D-Va., noted that Trump owed Americans more answers about a conflict that has driven up prices on gas “alongside rising prices for diesel, fertilizer, aluminum, and other essentials, with consequences that will continue to ripple through the economy for a long time to come” in his statement.

Meanwhile, Sen. Chris Murphy, D-Conn., released a statement that said the “speech was grounded in a reality that only exists in Donald Trump’s mind.”

Murphy went on to add that “no one in America, after listening to that speech, knows whether we are escalating or deescalating.”

Oil rose more than 4% and Asian stocks fell after U.S. President Donald Trump said in his first national address since the Iran war began that the U.S. will keep hitting Iran very hard.

Trump also said the United States will “finish the job” in Iran and that military operations could wrap up soon.

Tokyo’s Nikkei 225 was down 1.4% to 53,004.81 in early Asia trading on Thursday. South Korea’s Kospi lost 3.4% to 5,292.36. Hong Kong’s Hang Seng fell 0.8% to 25,082.59.

U.S. futures were down more than 0.7%.

Oil prices were sharply higher following Trump’s remarks. Brent crude, the international standard, jumped 5% to $106.22 per barrel. Benchmark U.S. crude rose 4.2% to $104.36 a barrel.

Members of civic groups hold signs against the U.S. and Israel attacks on Iran near the U.S. Embassy in Seoul, South Korea, Wednesday, April 1, 2026. (AP Photo/Lee Jin-man)

Israel's rescue teams and residents take shelter as sirens sounds next to a site struck by an Iranian missile in Bnei Brak, Wednesday, April 1, 2026. (AP Photo/Oded Balilty)

A family who fled Israeli shelling in southern Lebanon warm themselves by a bonfire next to tents used as shelters in Beirut, Lebanon, Tuesday, March 31, 2026. (AP Photo/Emilio Morenatti)

People stand near a damaged van beside scattered debris following an Israeli strike in Beirut, Lebanon, Wednesday, April 1, 2026. (AP Photo/Hassan Ammar)

A firefighter extinguishes a car at the site of Israeli airstrikes, in Beirut, Lebanon, Wednesday, April 1, 2026. (AP Photo/Hussein Malla)