U.S. stocks rose as another drop in oil prices and tepid economic data quelled inflation concerns.
The Dow Jones Industrial Average rose 160.24 points, or 0.30%, to 53577.40. The S&P 500 gained 24.42 points, or 0.32%, to 7677.28 and the tech-heavy Nasdaq Composite added 171.11 points, or 0.66%, to 26151.30.
Oil futures fell as traders weighed the relatively modest scale of a new round of U.S. economic sanctions on Iran. Oil lost $2.65, or 3.1% to close at $82.36 a barrel in New York, even after another oil tanker was struck near the Strait of Hormuz overnight.
Oil is a critical part of the inflation outlook, and Treasury yields have started to track movements in crude prices.
The yield on the 30-year bond declined 0.056 percentage point to 5.174%, the lowest yield since Aug. 5. The yield on the 10-year Treasury note fell 0.065 percentage point to 4.638%. The yield on the policy-sensitive two-year Treasury declined 0.038 percentage point to 4.195%.
The U.S. dollar ticked down against rivals as the U.S. and Canada headed into a trade war.
The recent weakening of the dollar has buoyed commodities priced in the greenback. Gold futures lost $2.70, or 0.06% to $4638.10 a troy ounce, but are still up by 15% for August so far. Copper futures gained 11.05 cents per pound, or 1.67% to $6.7095, the highest ever close for the industrial metal in New York.
Signals from economic data and consumer companies continued to be mixed.
Sales of new single-family homes slid 10.5% to 607,000 in July. While used-home sales make up a much larger share of the U.S. property market, the surprisingly large drop suggested rising mortgage rates were taking a greater toll on market activity than previously recognized.
The S&P Cotality Case-Shiller National Home Price Index, which measures home prices across the country, rose 1.5% in the 12 months through June, compared with a 1.2% increase in May.
The Conference Board's August reading of consumer confidence fell to 89.4 from 90.2 in July.
Dick's Sporting Goods fell 31% to $124.31 after the sportswear chain cut its operating income outlook, citing increasingly tough conditions in the athletic footwear and apparel markets. Dick's made a big bet on sneakers when it bought rival Foot Locker in 2025, but has been forced to cut prices on shoes. Shares of Dick's suppliers Nike and Adidas fell in sympathy.
United Airlines said it was adding a range of new international destinations, betting that direct routes to "Instagrammable" locations such as Ljubljana, Slovenia, would keep young people traveling by air.
Financial stocks continued a strong run as investors anticipate a slate of deals that could fatten Wall Street banks' revenue.
As it previews its initial-public offering expected for later this year, Anthropic, the maker of Claude AI models, is likely to tell investors its potential revenue opportunities are above $30 trillion, topping SpaceX's $28.5 trillion estimate. SpaceX completed the largest IPO in history when it sold $75 billion worth of stock in June.
Inspire Brands, which owns Massachusetts donut vendor Dunkin' and casual-dining restaurant Arby's among other chains, is another company exploring an IPO.
In the latest trade-war salvo, Canada vowed to impose tariffs on a range of U.S. goods, including steel, aluminum and motorcycles.
South Korean auto maker Hyundai Motor reached a tentative wage agreement with its labor union, ending months of walkouts that have disrupted production.
