U.S. Stocks Are Rising, Oil Markets Are Shaken

On Thursday, U.S. stocks rose amid signals of an anticipated meeting with China next week. Investors began examining the newly released quarterly results following disappointing earnings reports from Tesla (TSLA) and IBM (IBM).

The technology-heavy NASDAQ Composite Index (^IXIC) rose by 0.9%, while the S&P 500 (^GSPC) increased by 0.6%, and the Dow Jones Industrial Average (^DJI) climbed 0.3%.

Market activity gained momentum following a more than 5% increase in oil futures after the U.S. imposed sanctions on major Russian energy producers. Brent crude oil (BZ=F) surpassed $65 per barrel, while West Texas Intermediate (CL=F) exceeded $61.

Meanwhile, shares of Tesla rose by 2% after the electric vehicle manufacturer released its third-quarter report, recovering previous losses. IBM shares, on the other hand, fell by 1% as stronger earnings were offset by disappointing software revenues.

Additionally, American Airlines (AAL) experienced a significant jump in its stock after reporting higher-than-expected fourth-quarter revenue forecasts. Shares of T-Mobile (TMUS) dropped as the telecommunications company's customer base grew more than expected.

In the coming days, struggling chip maker Intel (INTC) will release its quarterly results.

On the trade front, President Trump announced that a long-awaited meeting with Chinese leader Xİ will take place next week. This development provided some relief to the markets.

Moreover, the Trump administration has reportedly received offers to consider taking stakes in certain quantum computing companies in the U.S. Stocks of targeted companies like IonQ (IONQ) and Rigetti Computing (RGTI) rose following this news.

Oil prices rose over 5% on Thursday following President Trump’s administration imposing sanctions on two major Russian energy companies in an effort to end the war in Ukraine.

West Texas Intermediate (CL=F) futures surged to $61.79 per barrel, while Brent futures climbed to $65.99. This marks the largest single-day increase since June 13 of this year.

The sanctions came after Europe's allies implemented tougher measures aimed at preventing Russia from generating revenue through energy products. Rebecca Babin from CIBC Private Wealth noted that the effectiveness of these measures is closely tied to administrative decisions.

Binance Coin (BNB-USD) rose by over 5% after President Trump pardoned Binance founder Changpeng Zhao. Zhao had been imprisoned after being convicted for violating anti-money laundering requirements in 2023.

While it has been stated that the Biden administration prosecuted Zhao to penalize the cryptocurrency industry, it has been noted that there was no clear instance of fraud or obvious victimization in such cases.

Mortgage interest rates fell to their lowest level in a year, as the yield on the 10-year Treasury bond dropped below 4%. The average 30-year mortgage rate was recorded at 6.19% as of Wednesday, while 15-year mortgage rates were noted at 5.44%.

Intel is preparing to announce its quarterly financial results, with worries about the chip maker's poor performance causing anxiety among investors. Analysts state that Intel's quarterly revenue expectations are at $13.15 billion.

IBM shares declined by 4% due to disappointing software revenue results. Despite some optimistic comments among investors, signs of growth could not allay concerns reflected in the news.

The stock of Super Micro Computer (SMCI) dropped 3% after the company lowered its revenue forecasts for the fiscal year 2026. It noted that it saw good demand for chips from Nvidia (NVDA) and AMD (AMD), and that new product designs delayed some revenues.

In conclusion, U.S. stocks opened with significant gains despite the concerns. Many investors are closely monitoring political and economic developments amidst the market fluctuations.