US Markets Edge Higher Amid Oil Price Pullback and AI Earnings Momentum

The S&P 500 finished 0.04 % higher, the Dow Jones Industrial Average added 0.32 %, and the Nasdaq 100 slipped 0.07 % on Thursday, 11 August 2026. A brief rally in crude oil was followed by a pullback that eased bond yields and helped buoy the broader equity market.

Oil price movements were the day’s main source of volatility. West Texas Intermediate (WTI) crude surged more than 2 % in overnight trade, hitting a one‑week high, but then fell after Al Jazeera reported that Oman and Iran were in advanced talks to reopen the Strait of Hormuz. The decline in oil prices softened inflation expectations, bringing the 10‑year Treasury yield down from a one‑week high of 4.73 % to 4.68 %. Lower yields lifted the S&P 500 and the Dow, while the Nasdaq, which is more sensitive to technology stocks, edged lower.

Earnings season has been a key driver of recent market strength. According to the source, the S&P 500 is on track for earnings growth of almost 32 % in the second quarter, far above the 23 % projection and nearly four times the average growth rate outside the Covid period since 2013. AI spending is expected to drive most of this growth, with AI‑infrastructure stocks projected to contribute about 60 % of the S&P 500’s earnings‑per‑share growth in Q2. So far, 85 % of the 446 S&P 500 companies that have reported Q2 earnings have beaten estimates.

Chipmakers and AI‑infrastructure names led the rally. ASML Holding, KLA Corp, Sandisk, Applied Materials, and Lam Research all rose more than 2 %. Analog Devices, Nvidia, NXP Semiconductors, Microchip Technology, Western Digital, and Texas Instruments gained over 1 %. In contrast, software stocks such as Datadog, Oracle, Autodesk, Workday, Microsoft, ServiceNow, Adobe, and Thomson Reuters fell between 1 % and 4 %.

Other notable moves included Rapid7, which jumped 19 % after raising its full‑year EPS forecast; Riot Platforms, which rose 14 % after securing a 20‑year cloud deal with Anthropic; and Cardinal Health, which led S&P 500 gainers after reporting a Q4 adjusted EPS of $2.91 and a 2027 forecast of $12.40 to $12.60. On the downside, ON Holding fell 21 % after weaker Q2 sales, dragging Nike down 1 %. Amentum cut its revenue forecast, and AppLovin was downgraded by Bank of America Global Research.

Interest‑rate expectations were reflected in the Treasury market. The 10‑year Treasury yield fell 2.9 bp to 4.678 %, after a brief rise to a one‑week high. The market priced in a 48 % chance of a 25‑bp rate hike at the next Federal Open Market Committee meeting on 15‑16 September. European government bonds followed a similar trend, with the German bund yield falling to 3.167 % and the UK gilt to 4.973 %. The European Central Bank’s next policy meeting on 10 September was priced with an 89 % probability of a 25‑bp hike.

Overseas markets were mixed. The Euro Stoxx 50 gained 0.40 %, while China’s Shanghai Composite fell 0.82 %. Japan’s Nikkei‑225 did not trade due to the Mountain Day holiday.

The day’s developments are tied to broader geopolitical and economic factors. The source notes that the risk of a flare‑up in the Middle East remains high, citing a missile attack on a UAE tanker in the Strait of Hormuz and a Houthi claim of an attack on Saudi Arabia’s Jazan refinery. The potential reopening of the Strait of Hormuz, as reported by Al Jazeera and Pakistani officials, has influenced oil prices and, by extension, market sentiment.

In summary, the U.S. stock market edged higher on a day of mixed sector performance, supported by a pullback in oil prices and a strong earnings outlook driven by AI spending. Bond yields fell as inflation expectations eased, and the market priced in a moderate probability of a rate hike in September. Overseas markets showed a similar mix of gains and losses, reflecting global uncertainty around energy supply and geopolitical tensions.