Oil Prices Calm Stock and Bond Markets 08/25 09:42

   Oil prices are falling again on Tuesday, which is helping to ease worries in 
the bond market and support stock prices.

   NEW YORK (AP) -- Oil prices are falling again on Tuesday, which is helping 
to ease worries in the bond market and support stock prices.

   The S&P 500 rose 0.2% and edged a bit closer to its all-time high set 
earlier this month. The Dow Jones Industrial Average was up 58 points, or 0.1%, 
as of 10:15 a.m. Eastern time, and the Nasdaq composite was 0.5% higher.

   Some of the strongest action was in the oil market, where the price for a 
barrel of Brent crude fell 2.7 to $88.10 and was heading for a second decline 
following 13 gains in 14 days. The drop came even though tensions between the 
United States and Iran seemed to ratchet higher after the Trump administration 
announced new sanctions to further hurt Iran's economy.

   Brent's price zigzagged between $72 and $102 last month as hopes rose and 
fell that the United States and Iran could reach a deal that would allow oil 
tankers to freely exit the Persian Gulf again.

   Tuesday's drop in oil prices tempered the worries about high inflation that 
helped drive Treasury yields in the bond market higher through the summer. 
Yields had gotten so high that the U.S. Treasury Department announced a 
surprise move last week to increase its repurchases of longer-term Treasury 
notes and bonds.

   High yields make borrowing more expensive for everyone and can slow the 
economy's growth while undercutting prices for stocks, cryptocurrencies and 
other investments.

   The yield on the 10-year Treasury fell to 4.66% from 4.70% late Monday and 
from 4.74% at the end of last week. That's a significant move for the bond 
market, though the 10-year yield remains firmly above its 3.97% level from 
before the war with Iran sent oil prices and worries about inflation much 
higher.

   On Wall Street, Nvidia and other winners of the boom in 
artificial-intelligence technology helped lead the way. Nvidia rose 2.3%, a day 
after its drop of 2.9% was the heaviest weight on the S&P 500.

   AI stocks have veered up and down through the summer on worries that their 
prices shot too high and that the AI boom may not be sustainable if it doesn't 
produce enough profits for companies. Nvidia will report its latest quarterly 
results on Wednesday, which could help steer the next move for AI-related 
stocks.

   The gains for chip stocks helped offset a 25.5% drop for Dick's Sporting 
Goods, which reported weaker results for the latest quarter than analysts 
expected. Executive Chairman Ed Stack said the retailer cut prices on some of 
its footwear and apparel to remain competitive, while launches for some 
footwear during the quarter ended up being weaker than it expected.

   The company cut is forecast for an underlying measure of profit in 2026 for 
both its Dick's and Foot Locker businesses. Its stock is potentially heading 
toward its worst day in three years.

   Worries have been rising about how strong spending can remain for U.S. 
households, which is the main engine of the economy. They're facing higher 
prices on everything from food to clothes and a job market that suddenly looks 
iffier after employers cut more jobs last month than they added.

   A report from the Conference Board on Tuesday said that confidence among 
U.S. consumers weakened by more than economists expected.

   In stock markets around the world, many indexes drifted modestly higher. 
South Korea's Kospi, which is dominated by two AI winners, added 0.7% for one 
of the world's biggest moves. It's been steadying since plunging 22.2% in July.