NEW YORK (AP) — Oil prices whipsawed on Thursday and surged toward their highest levels since the war with Iran began, only for the leaps to quickly vanish. The U.S. stock market, meanwhile, is gliding following strong profit reports from big companies like Alphabet.

The S&P 500 rose 0.4% and is just below its all-time high set earlier this week, as companies keep delivering fatter profits for the start of 2026 than analysts expected, even with very high oil prices and uncertainty about the economy. The Dow Jones Industrial Average was up 632 points, or 1.3%, as of 11:30 a.m. Eastern time, and the Nasdaq composite was 0.2% higher.

Alphabet led the way and climbed 7.3% after the owner of Google and YouTube reported profit for the latest quarter that almost doubled analysts’ expectations. Investments in artificial intelligence “are lighting up every part of the business,” CEO Sundar Pichai said.

The steadiness on Wall Street followed manic swings in the oil market, where prices surged overnight on worries that the Iran war will affect the flow of crude for a long time. Iran has closed the Strait of Hormuz to oil tankers, keeping them pent up in the Persian Gulf and away from customers worldwide, while a U.S. Navy blockade is preventing Iran from selling its own oil.

Traders are always buying and selling contracts for different kinds of oil, going out for many months. In the most actively traded part of the market for Brent crude, for delivery in July, the price got as high as $114.70 per barrel overnight. It then fell back toward $107 before sitting at $109.82, down 0.6%.

So far during the war, the peak price for the most actively traded Brent contract is $119.50, which was set last month.

In a less actively traded corner of the Brent market, the price for a barrel to be delivered in June briefly went above $126 overnight before pulling back toward $114.

Brent's price is still much more expensive than the roughly $70 level it was at before the war. But the morning's easing, along with the continuing flood of better-than-expected profit reports from U.S. companies, helped keep Wall Street stable near its records.

Caterpillar, Eli Lilly, and Royal Caribbean all rallied more than 8% after delivering profits for the latest quarter that topped analysts’ expectations. That’s big because stock prices tend to follow the track of corporate profits over the long term.

Still, a better-than-expected result isn’t always enough to boost a stock’s price if it’s already shot much higher.

Meta Platforms tumbled 9.4% even though the company behind Facebook and Instagram made more profit last quarter than expected. Investors focused more on Meta’s increased forecast for how much it will spend on data centers and other investments this year as it builds out its AI capabilities, up to a range of $125 billion to $145 billion.

Doubts are still high among some investors about whether all the AI spending by Meta and other companies will produce enough profit and productivity to make it worth it.

Microsoft fell 4.9% after likewise raising its forecast for investments and other capital spending. But analysts also said accelerating trends at its Azure business were encouraging.

Amazon slid 1.6% despite blowing past analysts’ expectations for earnings in the latest quarter.

In the bond market, Treasury yields eased after oil prices gave up their big overnight gains. Reports also suggested the U.S. economy's growth accelerated by less in the first three months of the year than economists expected, while a measure of inflation worsened in March by about as much as expected.

A separate report said that fewer U.S. workers applied for unemployment benefits last week in an indication of fewer layoffs even though companies are announcing large cuts to workforces.

The yield on the 10-year Treasury eased to 4.38% from 4.42% late Wednesday.

In stock markets abroad, indexes rose in Europe following a weaker finish in Asia.

London’s FTSE 100 jumped 1.6% after the Bank of England kept its main interest rate on hold. That followed similar decisions by the U.S. Federal Reserve on Wednesday and the Bank of Japan on Tuesday to keep their rates unchanged.

Germany's DAX returned 1.3%, and France's CAC 40 rose 0.5% after the European Central Bank also held its own interest rates steady.

Hong Kong’s Hang Seng lost 1.3%, while stocks added 0.1% in Shanghai after a report said China’s factory activity slowed slightly in April but remained in expansion territory for the second month.

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AP Business Writers Chan Ho-him and Matt Ott contributed to this report.