US stocks rally to records, but Brent oil also tops $100 on worries about the Iran war

NEW YORK (AP) - The U.S. stock market set more records after GE Vernova and other big companies joined the parade reporting fatter profits for the start of the year than analysts expected. But caution still hung over Wall Street Wednesday, and oil prices rose on uncertainty about what will happen in the war with Iran. The S&P 500 rallied 1% and topped its prior all-time high set on Friday. The Dow Jones Industrial Average added 0.7%, and the Nasdaq composite set its own record after climbing 1.6%. The price for a barrel of Brent crude oil briefly topped $102.

THIS IS A BREAKING NEWS UPDATE. AP's earlier story follows below.

NEW YORK (AP) - The U.S. stock market is rising toward more records Wednesday after GE Vernova, Boston Scientific and other big companies joined the list of those reporting fatter profits for the start of the year than analysts expected. But caution is still hanging over Wall Street, and oil prices rose on uncertainty about what will happen in the war with Iran.

The S&P 500 climbed 0.8% and was on track to top its all-time high set on Friday. The Dow Jones Industrial Average was up 210 points, or 0.4%, with an hour remaining in trading, and the Nasdaq composite was also heading for a record with a jump of 1.2%.

GE Vernova flew 12.8% higher after the company, whose products help generate about a quarter of the world's electricity, reported profit for the first three months of the year that blew past analysts' expectations.

Like the broader stock market, GE Vernova is benefiting from the rise of artificial-intelligence technology, and its electrification business booked more equipment orders for data centers during the quarter, $2.4 billion, than it did during all of last year. The company also raised its forecasts for revenue and other financial measures over the full year.

The vast majority of companies in the S&P 500 have so far been delivering results for the start of 2026 that have topped analysts' expectations, even with the war in Iran driving up oil prices and uncertainty for the global economy. Such strong performances have helped the S&P 500 power higher, and the index is on track for a 13th gain in its last 16 days.

Boston Scientific rallied 9%, Boeing climbed 6.7%, and Philip Morris International rose 5.2% after all likewise delivered results for the latest quarter that were stronger than analysts expected.

Still, another rise in oil prices helped keep enthusiasm in check on Wall Street. The price for a barrel of Brent crude oil, the international standard, climbed 3.5% to $101.91 on uncertainty about when the war with Iran could let up and allow petroleum to flow freely to customers from the Persian Gulf again.

The war has restricted traffic through the Strait of Hormuz, the narrow waterway off Iran's coast that oil tankers typically use to exit the Persian Gulf. Iran fired on three ships in the strait and seized two of them on Wednesday.

A day earlier, U.S. President Donald Trump extended a ceasefire but also said he was maintaining an American blockade of Iranian ports. The blockade keeps Iran from making money by selling its own crude oil.

The standoff over Iran's closure of the strait and the U.S. blockade raised doubts about when or if talks would resume to end the crisis.

Brent crude has shot up from roughly $70 per barrel since before the war on worries about a long-term disruption to the flow of oil. But moves in both the oil and stock markets have become much more modest in recent weeks, following vicious swings where Brent's price briefly topped $119 and the S&P 500 dropped nearly 10% below its prior all-time high.

On the losing end of Wall Street Wednesday was Best Buy, which fell 4.1% after the electronics retailer announced the departure of CEO Corie Barry. She will be replaced by longtime insider Jason Bonfig, the company's chief customer, product and fulfillment officer.

Stocks of cannabis companies rose amid reports that the Trump administration is preparing to reclassify marijuana as a less dangerous drug. Trump signed an executive order in December meant to speed up the Drug Enforcement Administration's process for reclassifying the drug, a move that would not make it legal for recreational use by adults nationwide, but could change how the drug is regulated and reduce a hefty tax burden on the cannabis industry.

Tilray Brands jumped 10.5%, and Canopy Growth surged 18.6%.

In stock markets abroad, indexes dipped in Europe following a mixed finish in Asia. Japan's Nikkei 225 rose 0.4%, while Hong Kong's Hang Seng fell 1.2%.

In the bond market, Treasury yields held relatively steady despite the gain in oil prices. The yield on the 10-year Treasury edged down to 4.29% from 4.30% late Thursday.

A day before, it had climbed after Trump's nominee to chair the Federal Reserve, Kevin Warsh, said he never promised Trump he would cut interest rates even though Trump has been angrily calling for lower rates.