US stocks rebound after strong economic updates and as oil prices stop spiking

NEW YORK (AP) — The U.S. stock market rebounded Wednesday from two days of punishing swings after oil prices stopped spiking and reports gave encouraging updates on the economy.

The S&P 500 rose 0.8% and made back most of its losses since the war with Iran began. The Dow Jones Industrial Average climbed 238 points, or 0.5%, and the Nasdaq composite climbed 1.3%.

The strength followed a scary start to Wednesday, when South Korea’s Kospi stock index plunged 12.1% for its worst loss in history. Uncertainty about the war has sent prices in financial markets careening up and down this week, with most taking their cues from what the price of oil is doing.

Oil prices moderated as trading moved westward from Asia to Europe and across the Atlantic. After briefly topping $84 per barrel, the price for a barrel of Brent crude, the international standard, settled at $81.40, back to where it was a day earlier. A barrel of benchmark U.S. crude rose 0.1% to $74.66.

Stocks also got a boost from signs of strength for the U.S. economy.

One report said growth for U.S. businesses in the real estate, finance and other services industries accelerated last month at the fastest pace since the summer of 2022. Encouragingly for inflation, it also said prices for such businesses are increasing at a slower rate, at least before the war with Iran began.

A second report suggested U.S. employers outside of the government picked up their hiring last month. That could be a hopeful signal for the more comprehensive report coming Friday from the U.S. government about the overall job market.

In financial markets, worries are centered on how long the war with Iran could last, how high inflation will go because of more expensive oil and how much corporate profits will sink because of it.

The U.S. stock market has a history of shaking off military conflicts in the Middle East relatively quickly, though that comes with the caveat that oil prices don’t jump too high. That has some professional investors suggesting patience through the volatility, at least when it comes to financial markets.

Not everyone is optimistic.

“I think the Iran situation is getting out of hand, and I think that U.S. President Donald Trump miscalculated enormously,” said Francis Lun, CEO of Venturesmart Asia. “The situation is very grim.”

On Wall Street, a mix of companies helped drive Wednesday’s rise.

Stocks enmeshed in the crypto industry climbed as bitcoin’s price rebounded back above $73,000. Coinbase Global jumped 14.6%, and Robinhood Markets rallied 8.1%.

Retailers and travel companies strengthened with hopes that a solid economy and an easing for jumps in gasoline prices will mean their customers may have more to spend.

Ross Stores climbed 8% after reporting better profit and revenue for the latest quarter than analysts expected and saying it’s entering 2026 with “solid momentum.” Expedia Group rose 3.1%.

Big Tech stocks, meanwhile, were the strongest forces lifting the market. Amazon rose 3.9%, and Nvidia added 1.7%. Because they’re among the biggest stocks in the U.S. market in terms of total value, their movements carry more weight on the S&P 500.

All told, the S&P 500 rose 52.87 points to 6,869.50. The Dow Jones Industrial Average climbed 238.14 to 48,739.41, and the Nasdaq composite rallied 290.79 to 22,807.48.

In stock markets abroad, indexes rose in Europe following sharp drops in Asia. France’s CAC 40 climbed 0.8%, and Germany’s DAX returned 1.7%. That came after losses of 2% for Hong Kong’s Hang Seng and 3.6% for Japan’s Nikkei 225, along with Seoul’s historic plunge.

In the bond market, Treasury yields ticked higher after jumping early in the week with worries about worsening inflation. The yield on the 10-year Treasury rose to 4.09% from 4.06% late Tuesday.

Wednesday’s strong reports on the economy were welcome news for the Federal Reserve, whose job it is to keep the U.S. job market healthy and inflation low. The Fed’s job has become more difficult because of the jump in oil prices, which is pushing upward on already high inflation.

The Fed could keep interest rates high to keep a lid on inflation. But high interest rates would also keep it more expensive for U.S. households and companies to borrow money, grinding down on the economy.

The central bank had indicated it planned to resume its cuts to interest rates later this year, in hopes of giving a boost to the job market and economy. Because of the war and higher oil prices, traders have pushed their forecasts further into the summer for when the Fed could begin cutting rates again.

AP Writers Matt Ott, Kim Tong-hyung and Elaine Kurtenbach contributed.

Financial information is displayed on the floor at the New York Stock Exchange in New York, Wednesday, March 4, 2026. (AP Photo/Seth Wenig)

Anthony Spina works on the floor at the New York Stock Exchange in New York, Tuesday, March 3, 2026. (AP Photo/Seth Wenig)

Anthony Confusione works on the floor at the New York Stock Exchange in New York, Tuesday, March 3, 2026. (AP Photo/Seth Wenig)

A dealer walks near the screens showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won at a dealing room of Hana Bank in Seoul, South Korea, Wednesday, March 4, 2026. (AP Photo/Lee Jin-man)

A dealer talks on the phone at a dealing room of Hana Bank in Seoul, South Korea, Wednesday, March 4, 2026. (AP Photo/Lee Jin-man)

A dealer walks past near a screen showing the foreign exchange rate between U.S. dollar and South Korean won at a dealing room of Hana Bank in Seoul, South Korea, Wednesday, March 4, 2026. (AP Photo/Lee Jin-man)

A dealer walks past near a screen showing the Korea Composite Stock Price Index (KOSPI), right, and the foreign exchange rate between U.S. dollar and South Korean won at a dealing room of Hana Bank in Seoul, South Korea, Wednesday, March 4, 2026. (AP Photo/Lee Jin-man)

A person walks by an electronic stock board showing Japan's Nikkei index at a securities firm in Tokyo Wednesday, March 4, 2026. (Masanori Kumagai/Kyodo News via AP)

WASHINGTON (AP) — The head of the IRS largely declined to answer questions about recent unlawful disclosures of taxpayer data when he was questioned by lawmakers at a congressional hearing on Wednesday, saying they happened before his tenure began.

IRS CEO Frank Bisignano faced the House Ways and Means Committee to speak about the agency's progress in serving taxpayers as the 2026 tax season is in full swing. It was his first time facing lawmakers in his role as leader of the IRS after being named to the newly created CEO position last October. Treasury Secretary Scott Bessent remains acting commissioner of the IRS.

In prepared remarks, Bisignano focused on the Internal Revenue Service’s implementation of Republicans’ sweeping tax and spending law, which includes eliminating taxes on tips and overtime, exempting certain car loan interest, creating a deduction for older adults and launching Trump Accounts for children’s savings.

However, several Democratic lawmakers zeroed in on a federal judge's finding that the IRS broke the law by disclosing confidential taxpayer information “approximately 42,695 times” to Immigration and Customs Enforcement as part of an agreement between ICE and the Department of Homeland Security to share information on immigrants for the purpose of identifying and deporting people illegally in the U.S. Immigration and border security are a major part of the agenda of President Donald Trump, a Republican.

“Was anyone fired? Was anyone disciplined? Was anyone held accountable? Was anyone held to account?” Rep. Mike Thompson, D-Calif., asked Bisignano.

Bisignano cited ongoing litigation and declined to answer questions about the disclosures, adding, “I don’t want to debate the numbers.” He said no employee was fired or disciplined for the disclosures.

U.S. District Judge Colleen Kollar-Kotelly found last month that the IRS unlawfully shared the taxpayer information of thousands of people with immigration enforcement.

There are several ongoing cases that challenge the IRS-DHS agreement. Two court orders have blocked the agencies from massive transfers of taxpayer information and blocked ICE from acting on any IRS data in its possession. Those preliminary injunctions are still in place.

Rep. Suzan DelBene, D-Wash., said, “This is a catastrophic leadership failure and a huge hit on the public’s confidence in your integrity.”

Bisignano, who also serves as the Social Security Administration’s commissioner, responded, “Obviously all these events occurred before my tenure.” But he added it was “my responsibility to get it right.”

A data-sharing agreement signed last April by Bessent and Homeland Security Secretary Kristi Noem allows ICE to submit names and addresses of immigrants inside the U.S. illegally to the IRS for cross-verification against tax records. The deal led the then-acting commissioner of the IRS to resign.

During the hearing, Republican lawmakers gave compliments to the Trump administration for signing the Republican tax measure into law.

Committee Chairman Jason Smith, R-Mo., said under the new law, “Americans are getting bigger refunds that put more money back into their pockets.”

According to the latest IRS data, the average refund amount is up by roughly 10%. The average refund was $3,453 in 2025 and is $3,804 in 2026 — a difference of $351. The White House has projected that refunds would be up by $1,000 on average.

“Under President Trump, the IRS is putting the American taxpayer first and supporting working families,” Smith said.

During the hearing, Democrats also questioned Bisignano on the IRS' decision last month to cut union contracts with its workers. Rep. Richard Neal, D-Mass., contended that “by terminating the union contract it makes it easier to take apart the IRS.”

Bisignano, who is the son of a former Treasury Department worker, said, “Federal employees under statute have greater benefits than any union in the world can provide for their people.”

“They're losing nothing,” he said.

Follow the AP's coverage of the Internal Revenue Service at https://apnews.com/hub/internal-revenue-service.

FILE - The headquarters of the Internal Revenue Service is in Washington, August 10, 2024. (AP Photo/Ted Shaffrey, File)