Wall Street hangs near its records as oil prices ease

NEW YORK (AP) — U.S. stocks are hanging near their records Wednesday as oil prices fall and ease the pressure on households and businesses worldwide.

The S&P 500 was virtually unchanged a day after setting its all-time high. The Dow Jones Industrial Average was up 335 points, or 0.7%, as of 10:30 a.m. Eastern time, and the Nasdaq composite was 0.2% lower.

Stocks of companies with big fuel bills helped lead the way on hopes that lower oil prices will remove a big drag on their profits. Norwegian Cruise Line Holdings rallied 6.1%, and United Airlines climbed 7%. Delta Air Lines rose 4.8% and is on track to set an all-time high.

The price for a barrel of Brent crude oil fell 3.8% to $95.80 after the ceasefire between the United States and Iran appeared to hold despite the U.S. military launching what it called “self-defense” strikes in southern Iran. A barrel of benchmark U.S. crude fell even more, 4.5%, to $89.64 on hopes that the United States and Iran can reach an agreement to reopen the Strait of Hormuz and allow oil tankers to exit the Persian Gulf again.

Stocks have been able to run to records despite the painful inflation and uncertainty caused by high oil prices largely because companies have reported surprisingly strong profits for the start of 2026, and the forecast is for them to continue.

Bath & Body Works rallied 15.2%, and Abercrombie & Fitch climbed 13.5% after both reported bigger profit for the latest quarter than analysts expected. That's even as U.S. consumers continue to say they're feeling discouraged about the economy and inflation.

Lululemon Athletica rose 6.6% after reaching a deal with its founder, Chip Wilson, where it will add a former chief marketing officer of ESPN and a former co-CEO of On to its board of directors.

On the losing side of Wall Street was Dick's Sporting Goods, which dropped 4.2% despite delivering a profit for the latest quarter that edged past expectations. Analysts pointed to how much profit it wrung out of each $1 in revenue, which some called a bit weak.

Oil-and-gas stocks also sank, hurt by dropping prices for crude. Exxon Mobil fell 1.8%, and Chevron sank 1.8% to cut into their big gains for the year so far. Halliburton dropped 4.8% to trim its gain for the year so far back below 39%.

In the bond market, Treasury yields eased after falling oil prices took pressure off inflation. The yield on the 10-year Treasury slipped to 4.47% from 4.50% late Tuesday and from 4.67% roughly a week ago.

It’s a respite following recent gains for yields in bond markets worldwide, which threatened to slow economies and undercut prices for stocks and all kinds of other investments. High yields have already forced the average long-term U.S. mortgage rate to its most expensive level since last summer, and they could curtail companies’ borrowing to build the artificial-intelligence data centers that have supported the U.S. economy’s growth recently.

In stock markets abroad, indexes were mixed across Europe and Asia. South Korea's Kospi was one of the world's best performers and jumped 2.3% after SK Hynix, which is a big beneficiary of the artificial-intelligence boom, soared 9.3%.

A day before, Micron Technology surged to become the latest Big Tech company to be worth more than $1 trillion on AI excitement. Its stock has more than tripled already in 2026, and analysts at UBS said Tuesday it could soar even more because of how fundamentally AI has improved demand for computer memory.

AP Business Writer Elaine Kurtenbach contributed to this report.

Trader Edward Curran, left, and specialist Meric Greenbaum, center, work on the floor of the New York Stock Exchange, Friday, May 22, 2026. (AP Photo/Richard Drew)

A person looks at an electronic stock board showing Japan's Nikkei index at a securities firm Monday, May 25, 2026, in Tokyo. (AP Photo/Eugene Hoshiko)

A dealer walks past 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, May 27, 2026. (AP Photo/Lee Jin-man)

A dealer walks past near the screens showing the foreign exchange rates at a dealing room of Hana Bank in Seoul, South Korea, Wednesday, May 27, 2026. (AP Photo/Lee Jin-man)

A dealer walks past 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, May 27, 2026. (AP Photo/Lee Jin-man)

A dealer stands near the screens showing the Korea Composite Stock Price Index (KOSPI), the foreign exchange rate between U.S. dollar and South Korean won and the Korean Securities Dealers Automated Quotations (KOSDAQ) at a dealing room of Hana Bank in Seoul, South Korea, Wednesday, May 27, 2026. (AP Photo/Lee Jin-man)

DEIR AL-BALAH, Gaza Strip (AP) — Hamas confirmed Wednesday that Israeli airstrikes in Gaza City killed the new leader of its military wing less than two weeks after his predecessor was killed.

Hamas said in a statement that Mohammed Odeh died Tuesday along with his wife and two of his children in an airstrike. It came after Israeli Defense Minister Israel Katz announced that the Israeli military had targeted and killed Odeh.

At least five people — including Odeh and his family members — were killed and 12 injured in Tuesday’s strike on a market in Gaza City, local hospitals said. The attack came on the eve of Eid al-Adha, a major Muslim holiday.

Thousands of people gathered Wednesday for the joint funeral of Odeh's family in Gaza City. Mourners covered the four bodies with green Hamas flags and marched from a mosque through the city, chanting and firing shots in the air. Some carried posters with Odeh's poster emblazoned with the words “one of the chiefs of staffs of the Qassam Brigades,” referring to Hamas' military wing.

Hamas condemned the strike, and said Odeh had been active with the group for more than three decades and was part of the first generation that helped establish the movement’s military and armed wing.

Katz called him “one of the architects” of the Oct. 7, 2023, attacks that triggered over two years of war in Gaza and said it was the fourth time Israel has killed the head of Hamas’ military wing since that massacre. Izz al-Din al-Haddad, the previous head, was killed on May 16.

Katz said that Israel would continue to target Hamas leaders involved in the Oct. 7, 2023 attack. “We pledged that Hamas will not hold civilian or military rule,” he wrote on X.

Prime Minister Benjamin Netanyahu, who is preparing for elections in the fall, also threatened that Israel will target everyone involved in the Oct. 7, 2023, attack.

The attack came as Muslims prepared for Eid al-Adha, normally a joyous time of family gatherings and large meals.

The holiday once again is subdued this year in Gaza, where the vast majority of people remain displaced and live in tents or temporary shelters after a devastating war. Around 90% of Gaza’s more than 2 million people have lost their homes, according to U.N. estimates, with most of them now sheltering in huge tent camps with rat infestations and pools of sewage. They are dependent on aid to survive.

Eid al-Adha, or “Feast of Sacrifice,” is an Islamic holiday celebrated by millions of Muslims across the globe. The four-day holiday, which begins during the Hajj pilgrimage, also is known for being a joyous occasion during which families gather, and children are given new clothes and gifts.

“This is not Eid ... we’re dead,” said Mahmoud Saqer, a displaced man from Khan Younis, who described people as being distressed by the ongoing human suffering and killings in the territory.

In Khan Younis and Gaza City, amid destroyed buildings, including a ruined mosque, people gathered for Eid prayers with few signs of celebration beyond a few clusters of balloons lining one street. Tahrir al-Khatib said the joy that accompanies Eid has been silenced in Gaza.

“There’s no Eid. My children were killed. Eid is only for the people who lost no one,” said Ayda Al-Banna, a displaced women from Gaza City, who prayed Eid prayers with her granddaughter.

A ceasefire reached between Israel and Hamas in October remains fragile. Israeli attacks have killed more than 880 Palestinians since the ceasefire took effect. Israel says its attacks are in response to violations by Hamas or threats to its soldiers, but Palestinian health officials say scores of civilians have been among the dead. Four Israeli soldiers have also been killed during this period in Gaza.

Israel launched its offensive in Gaza in response to the Hamas attacks in October 2023, which killed some 1,200 people and took 251 others hostage.

Associated Press writer Sally Abou AlJoud in Beirut and Fatma Khaled contributed from Cairo.

Palestinians mourn over the body of Mohammad Odeh, whom Israel says was a leader of Hamas Qassam Brigades, a day after he was killed in an Israeli airstrike, during his funeral in Gaza City, Wednesday, May 27, 2026. (AP Photo/Jehad Alshrafi)

Palestinians mourn over the body of Mohammad Odeh, whom Israel says was a leader of Hamas Qassam Brigades, a day after he was killed in an Israeli airstrike, during his funeral in Gaza City, Wednesday, May 27, 2026. (AP Photo/Jehad Alshrafi)

Palestinians take photos with Islamic Jihad militants as they gather for Eid al-Adha prayers in Gaza City Wednesday, May 27, 2026. (AP Photo/Jehad Alshrafi)

Muslims worshipers gather for Eid al-Adha prayers in Gaza City Wednesday, May 27, 2026. (AP Photo/Jehad Alshrafi)

Muslims worshipers offer Eid al-Adha prayers in Gaza City Wednesday, May 27, 2026. (AP Photo/Jehad Alshrafi)