US stock markets edged lower on Thursday even as Wall Street had just closed at record highs, as rising oil prices tied to renewed tensions with Iran weighed on investor sentiment. The S&P 500 slipped 0.1% from its record close on Wednesday, while the Dow Jones Industrial Average fell 219 points, or 0.4%, and the Nasdaq Composite dropped 0.2% in early trade. The declines came after both the Dow and Nasdaq had reached record levels the previous day, supported by strong corporate earnings.
Oil prices surged after the US Central Command reported that Kuwait had intercepted missiles launched by Iran late on Wednesday night. This followed earlier US “defensive” strikes targeting missile launch sites and minelaying boats in southern Iran. Brent crude oil prices rose 2%, reaching $96.13 per barrel, adding to inflation concerns and pressuring companies with higher fuel costs. Among the most affected were Norwegian Cruise Line Holdings, which fell 1%, and Delta Air Lines, which declined 1.1%.
Despite the headwinds from climbing oil prices and geopolitical tensions, the broader market remained supported by robust corporate earnings for the first quarter of 2026. Several major companies reported stronger-than-expected profits, lifting investor confidence. Dollar Tree surged 15% after posting quarterly profits above analyst estimates. CEO Mike Creedon attributed the improvement to better store conditions and strong operational execution, even as tariff-related cost pressures persisted. The company also issued a full-year profit forecast exceeding market expectations.
Retailer Kohl’s rallied 21.3% following better-than-expected quarterly results, while food company Hormel Foods gained 8.1% after strong sales of Jennie-O turkey products and Spam exports boosted profits. Cloud data platform Snowflake jumped 33.3% after reporting quarterly profit and revenue above estimates, with CEO Frank Slootman highlighting continued growth driven by artificial intelligence adoption. In contrast, Salesforce fell 2% despite beating profit expectations, as investors grew concerned over rising competition from AI-focused rivals.
In the bond market, Treasury yields were mixed as new data showed the Federal Reserve’s preferred inflation gauge, the personal consumption expenditures (PCE) index, accelerated in April broadly in line with expectations. The US personal savings rate also fell to a four-year low of 2.6%, reflecting changing consumer behavior amid rising prices. The yield on the 10-year Treasury note remained steady at 4.48%, unchanged from the previous session. Meanwhile, global stock markets outside the US mostly declined, with Hong Kong’s Hang Seng index falling 1.3%.
On a separate but globally significant note, a joint report by the United Nations’ World Meteorological Organization (WMO) and the UK’s Met Office warned that average global temperatures are likely to reach near-record levels in the next five years, with Arctic warming outpacing the rest of the world. The report, released on May 28, 2026, forecasts that annual global mean near-surface temperatures between 2026 and 2030 will range between 1.3°C and 1.9°C above the 1850–1900 pre-industrial average. This means it is very likely that at least one year during this period will temporarily exceed 1.5°C above pre-industrial levels—a threshold the Paris Agreement aimed to avoid in the long term.
Melissa Seabrook, a research scientist at the UK Met Office, emphasized that temporarily crossing 1.5°C does not mean the Paris Agreement has failed, as the agreement refers to a long-term 20-year average. However, she cautioned that the window to limit global warming to 1.5°C is rapidly closing. The report also predicts Arctic winter temperatures will rise more than three and a half times faster than the global average, reaching about 2.8°C above the 1991–2020 baseline. This accelerated warming is expected to lead to melting Arctic sea ice in regions such as the Barents Sea, Bering Sea, and Sea of Okhotsk, potentially disrupting weather systems and increasing the frequency of severe weather events, particularly in northern latitudes.
Additionally, the report forecasts wetter conditions in the northern hemisphere over the next five winters, with increased rainfall expected in northern Europe, Alaska, Siberia, and the Sahel during May to September. Conversely, drier-than-usual conditions are anticipated in the Amazon during the same period. A strong El Niño event is also predicted for the coming winter, which could persist into 2027, further elevating global temperatures due to the warming of the Pacific Ocean. El Niño, a periodic warming of sea surface temperatures in the central and eastern Pacific, typically lasts between nine and twelve months and can significantly influence global weather patterns.
