US stocks drift near their records in mixed trading after oil prices fall

NEW YORK (AP) — U.S. stocks are drifting near their records Monday after trading resumed following a three-day weekend for Wall Street.

The S&P 500 slipped 0.3%, coming off its 11th winning week in the last 12, and pulled 1.7% below its all-time high set early this month. The Dow Jones Industrial Average was up 131 points, or 0.3%, as of 10:45 a.m. Eastern time, and the Nasdaq composite was 1% lower.

In the oil market, prices eased following talks over the weekend between the United States and Iran on their war. U.S. Vice President JD Vance said they created a “good foundation for a successful final deal.”

An end to the war could clear the Strait of Hormuz for oil tankers and allow for the undisputed resumption of deliveries from the Persian Gulf. Iran’s military had said Saturday that it closed the Strait of Hormuz again, though U.S. Central Command has disputed that.

The price for a barrel of Brent crude oil fell 2.8% to $78.29, closer to its roughly $70 price from before the war. Benchmark U.S. crude oil fell 2.3% to $74.14 per barrel.

The lower oil prices, though, did not pull down Treasury yields in the bond market. Yields have been climbing because of speculation that the Federal Reserve may have to hike interest rates this year in order to keep a lid on inflation, which has been accelerating because of expensive oil caused by the Iran war. Economists expect a report on Thursday to show a measure of inflation for U.S. consumers sped up to 4.1% in May from 3.8% in April.

The yield on the 10-year Treasury climbed to 4.49% from 4.46% late Thursday and from just 3.97% before the war.

Traders are betting on a nearly 90% chance the Fed will raise its federal funds rate at least once by the end of the year, with a small minority calling for four increases. That’s up from the 57% chance seen just a week ago, according to data from CME Group.

High yields in bond markets worldwide caused by worries about inflation have already been threatening to slow economies and undercut prices for all kinds of investments. High yields particularly hurt investments seen to be the most expensive, which raises the pressure on companies that have soared in the mania around artificial-intelligence technology.

SpaceX fell 10.4% to drop toward $165. It’s heading toward a third straight loss following a big three-day run since its ballyhooed debut on the U.S. stock market, when it initially sold its stock at $135 per share.

Elsewhere on Wall Street, AbbVie climbed 5.4% after saying it agreed to buy Apogee Therapeutics and its potential treatments for patients with dermatologic, respiratory and other related inflammatory and immunological diseases. Apogee Therapeutics soared 46.7% following the announcement of the deal, valued at roughly $10.9 billion.

In stock markets abroad, the United Kingdom’s FTSE 100 rose 0.6% after Keir Starmer said he was stepping down as leader of the governing Labour Party and will leave office within weeks.

In Asia, Tokyo’s Nikkei 225 jumped 1.5% and ended at another all-time high, led by AI stocks. South Korea’s Kospi gained 0.7% to its own record, helped by AI-related companies.

AP Business Writers Chan Ho-him and Matt Ott and AP Senior Producer Mayuko Ono contributed to this report.

Options trader Joseph D'Arrigo works on the floor of the New York Stock Exchange, Tuesday, June 16, 2026. (AP Photo/Richard Drew)

Options trader Doran Swan works on the floor of the New York Stock Exchange, Tuesday, June 16, 2026. (AP Photo/Richard Drew)

A currency trader passes by a screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Monday, June 22, 2026. (AP Photo/Ahn Young-joon)

Currency traders work at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Monday, June 22, 2026. (AP Photo/Ahn Young-joon)

Currency traders watch monitors near a screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Monday, June 22, 2026. (AP Photo/Ahn Young-joon)

Currency traders work at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Monday, June 22, 2026. (AP Photo/Ahn Young-joon)

MELBOURNE, Australia (AP) — Police found 2.7 metric tons (3 tons) of cocaine on a property on Sydney’s outskirts in Australia’s largest-ever seizure of the drug, officials said Monday.

The drug was found on June 19 in plastic tubs buried in underground bunkers hidden beneath three shipping containers on a semirural property in the suburb of Londonderry on Sydney’s western edge, the Queensland Joint Organized Crime Taskforce said in a statement.

The containers had false floors that provided access to the cocaine, which police estimate had a street value of 816 million Australian dollars ($572 million). Two Sydney residents, men aged 21 and 25, were arrested at the property and charged with possessing a commercial quantity of an illicit drug. They face potential sentences of life in prison.

Australia’s previous record cocaine haul was 2.34 metric tons (2.58 tons) seized in 2024 from a fishing boat near K’gari, formerly known as Fraser Island, off the Queensland state coast.

Police said the cocaine found in Sydney, the capital of New South Wales state and Australia's most populous city, landed by boat at Midge Point in the sparsely-populated Queensland tropics. They allege that a Sydney organized crime group transported the drug by road to the city, a distance of 1,800 kilometers (1,100 miles), police said.

Police added that they suspect the shipment was landed from the same mother ship as 178 kilograms (392 pounds) of cocaine previously seized in Queensland. Six people have been charged over that cocaine and 142 kilograms (313 pounds) of methamphetamine that was also found in the investigation.

They suspect the mother ship to be MV Wealth, a Belize-flagged cargo ship that has been seized by authorities in Solomon Islands on suspicion of involvement in transnational organized crime.

The Solomons are 2,000 kilometers (1,200 miles) northeast of Queensland.

Australian Federal Police Commander Stephen Jay said organized crime groups were increasingly targeting Queensland’s 13,000-kilometer (8,000-mile) coastline to smuggle drugs.

Australians pay some of the world’s highest prices for cocaine, which makes Australia a lucrative market for drug traffickers.

In this undated photo provided by the Australian Federal Police, a quantity of cocaine is bagged and displayed in Sydney. (Australian Federal Police via AP)

In this photo provided by the Australian Federal Police, a man, center, is arrested by police in Londonderry in western Sydney, Friday, June 19, 2026. (Australian Federal Police via AP)