Stock market today: Wall Street rises, but a slide for oil keeps the gains in check

NEW YORK (AP) — U.S. stocks are ticking higher Thursday as financial markets around the world rally again.

The S&P 500 was up 0.2% in afternoon trading and flirting with the possibility of setting an all-time high for the third time this week and the 42nd time this year. The Dow Jones Industrial Average was up 215 points, or 0.5%, as of 1:14 p.m. Eastern time, and the Nasdaq composite was edging up 0.2%.

Micron Technology led the way with a jump of 14% after the maker of computer memory and storage delivered stronger profit for the latest quarter than analysts expected. It pointed to sales related to artificial-intelligence technology, where a boom has helped drive some stocks to astounding heights.

Jabil climbed 10.6% after the electronics manufacturer likewise reported stronger profit and revenue than expected. It also announced a plan to buy back up to $1 billion of its stock to plow cash to its shareholders.

But drops for Exxon Mobil and other oil-and-gas companies were keeping the market's gains in check. Oil prices tumbled after The Financial Times reported through sources that Saudi Arabia is preparing to abandon its unofficial price target of $100 a barrel for crude as it prepares to increase output.

The price of a barrel of benchmark U.S. crude fell 2.8%, while the international standard of Brent crude fell 2.4%. That dragged Exxon Mobil’s stock down 1.4%, and it was one of the heaviest weights on the S&P 500. ConocoPhillips sank 2.5%.

A big winner of the AI frenzy, Super Micro Computer, was meanwhile giving back some of its huge gains after more than tripling last year. Its stock tumbled 13.9% following a report from The Wall Street Journal saying the U.S. Department of Justice is probing the seller of servers and storage systems. The company declined to comment.

A prominent investor, Hindenburg Research, published a report in August that accused the company of accounting red flags and other issues, which Supermicro CEO Charles Liang later said contained false or inaccurate statements.

In stock markets overseas, indexes were more jubilant on hopes for more moves by China to prop up the world’s second-largest economy. The country’s powerful Politburo on Thursday called for intensified efforts as China tries to meet its goals for economic growth, according to the official Xinhua News Agency.

That follows a raft of announcements earlier in the week by the country’s central bank that had also sent global markets jumping. China’s economic growth has been flagging, with particular troubles in its real-estate industry, and Chinese officials appear to be making a more coordinated effort to boost it following earlier piecemeal attempts.

In the United States, meanwhile, more encouraging news came after a round of reports on Thursday suggested the world’s largest economy may be doing better than expected.

Fewer U.S. workers applied for unemployment benefits last week in the latest signal that layoffs remain relatively low across the economy. A separate report said the overall U.S. economy grew at a 3% annual rate during the spring, as previously estimated. That’s a solid rate.

The hope on Wall Street is for a form of financial nirvana where the U.S. economy's growth can hold steady and keep profits for companies humming while the Federal Reserve continues to lower interest rates.

The Fed last week made a drastic turn in how it sets interest rates. It’s now cutting them to make things easier for the U.S. economy after keeping rates high for years in hopes of extinguishing high inflation. Lower rates not only make it less expensive to borrow money to buy a house, a car or things on credit cards, they can also give a boost to prices for all kinds of investments.

The fear is that the job market could weaken further as the cumulative effects of all the Fed's past hikes to interest rates show themselves. The Fed kept its main interest rate at a two-decade high for more than a year in hopes of slowing the U.S. economy enough to stifle inflation. U.S. employers have already begun to slow their hiring.

When they cut their main interest rate by an unusually large half of a percentage point last week, Fed officials also suggested they may cut the federal funds rate by another half of a percentage point this year.

Many traders are betting on that big of a cut at the Fed's next meeting alone in November, with another possible cut in December. If economic reports continue to come in stronger than expected, the Fed may not end up cutting as much as investors expect.

In the bond market, the yield on the 10-year Treasury remained at 3.79% from late Wednesday. The two-year yield, which more closely follows expectations for what the Federal Reserve will do with short-term interest rates, rose to 3.61% from 3.56%.

In stock markets abroad, jumps of 4.2% in Hong Kong and 3.6% in Shanghai led the way. Indexes also climbed 2.8% in Japan, 2.3% in France and 1.7% in Germany.

South Korean stocks jumped 2.9%, led by semiconductor maker SK Hynix, which launched production of a new memory chip for artificial intelligence.

AP Business Writers Matt Ott and Elaine Kurtenbach contributed.

FILE - The New York Stock Exchange, at rear, is shown on Sept. 24, 2024, in New York. (AP Photo/Peter Morgan, File)

The New York Stock Exchange is shown on Wednesday, Sept. 25, 2024, in New York. (AP Photo/Peter Morgan)

Currency traders watch monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, Sept. 26, 2024. (AP Photo/Ahn Young-joon)

People walk in front of an electronic stock board showing Japan's Nikkei index at a securities firm Thursday, Sept. 26, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A person stands in front of an electronic stock board showing Japan's Nikkei index at a securities firm Thursday, Sept. 26, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A currency trader watches monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, Sept. 26, 2024. (AP Photo/Ahn Young-joon)

People ride bicycles in front of an electronic stock board showing Japan's Nikkei index at a securities firm Thursday, Sept. 26, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A currency trader watches monitors near a screen showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, Sept. 26, 2024. (AP Photo/Ahn Young-joon)

A person looks at an electronic stock board showing Japan's Nikkei index at a securities firm Thursday, Sept. 26, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

People walk in front of an electronic stock board showing Japan's Nikkei index at a securities firm Thursday, Sept. 26, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

New York City Mayor Eric Adams was indicted Thursday on federal charges alleging that he took bribes and illegal campaign contributions from foreign sources.

The U.S. attorney’s office in Manhattan alleges in the indicment that Adams “compounded his gains” from the illegal contributions by gaming the city’s matching funds program, which provides a generous match for small dollar donations.

FBI agents entered the mayor’s official residence and seized his phone early Thursday, hours before the indictment was made public. The indictment caps off an extraordinary few weeks in New York City, as federal investigators have homed in on members of Adams’ inner circle, producing a drum-beat of raids, subpoenas and high-level resignations that have thrust City Hall into crisis.

Here's the latest:

The White House pushed back against claims by the New York City mayor that he was targeted because of his objections to the administration’s efforts to address immigration and border crossings, saying the actions by the Justice Department were independent of politics.

“The president was clear, even when he was running in 2020, that he was going to make sure that DOJ is independent and the DOJ is handling this case independently,” White House press secretary Karine Jean-Pierre told reporters at Thursday’s briefing.

Adams’ administration has been bogged down with attempts to house tens of thousands of international migrants who overwhelmed the city’s homeless shelters, with Adams at odds with President Joe Biden over funding and a strategy to handle the influx of new residents.

Democratic New York Gov. Kathy Hochul, who has the power to remove Adams from office, told reporters after an event Thursday morning that she had not yet read the indictment but would soon do so and then offer detailed comments on the charges.

“I’m going to take the time I need to review this indictment, see what’s embedded with this, but my number one responsibility is to make sure the people of New York city and state of New York are served,” Hochul said.

Williams, a Democrat, would then schedule a special election.

In a statement Thursday, Williams did not explicitly call for Adams to step down but said “It is federal officials’ obligation to prove their case, it is the mayor’s obligation to prove to New Yorkers that there is a real plan and path to govern the city effectively and regain trust, and his time to show that plan is rapidly running out.”

Adams is the police captain who won election nearly three years ago to become the city’s second Black mayor on a campaign that stressed his working class roots and commitment to public safety.

But as he has made reducing crime a cornerstone of his administration, he's faced growing legal peril, with multiple federal investigations homing in on his top aides and his own campaign.

In the last two weeks alone, the leaders he appointed to oversee the country’s largest police force and largest schools system have announced their resignations.

Jeffries is the Democratic leader of the U.S. House and a New Yorker.

“Like every other New Yorker and American, Eric Adams is entitled to the presumption of innocence. That principle is central to the administration of justice in the United States of America,” Jeffries said in a statement. “A jury of the Mayor’s peers will now evaluate the charges in the indictment and ultimately render a determination. In the meantime, I pray for the well-being of our great City.”

Douglas Muzzio, a retired political science professor from Baruch College with extensive knowledge of New York politics, said the indictment will cause a leadership vacuum at the highest level of city government as Adams tries to fend off the charges.

“Pretty soon entire departments are going to have gridlock, and as people are worried about their jobs, their future, the momentum of the city is going to slow considerably,” Muzzio said. “The impact is going to be real and substantial, particularly with the mayor out of the picture and many of his commissioners have resigned, will resign or are under a cloud.”

Williams says Adams engaged in “long-running” corruption involving bribes from foreign nationals dating back nearly a decade.

Speaking at a news conference at his Manhattan office, Williams detailed the allegations of bribery and illegal campaign contributions.

Williams also said the investigation continues and more people “will be held accountable.”

“Everyone who knows me knows that I follow campaign rules and I follow the law,” he said.

The mayor said people should question the federal officials who orchestrated Thursday’s events, when asked if he believed the investigation was political.

Adams failed to disclose his free and discounted travel, created a false paper trail to suggest he had paid it, claimed to a staffer that he deleted his text messages and directed the staffer to ensure his activities in Turkey in 2021 were shielded from public view, prosecutors alleged.

Adams and his co-conspirators, unnamed in the indictment, “continued their efforts to defeat scrutiny of their criminal conduct after the federal investigation into those crimes became known to them,” the indictment said.

Last November, as FBI agents knocked on her door to execute a search warrant, Adams’ fundraiser called the mayor five times and Adams later called her phone as agents were leaving her residence, the indictment said. The fundraiser refused to tell agents who paid for her 2021 travel to Turkey, the indictment said.

Adams was in Washington, D.C. at the time, but upon learning about the search, he canceled the meeting and immediately returned to New York City. A few days later, the FBI executed a search warrant for Adams’ electronic devices. According to the indictment, Adams produced two cellphones but not the personal cellphone he used in conjunction with his alleged crimes. Adams later turned over the phone in response to a subpoena, but it was locked and required a password that Adams claimed to have forgotten, the indictment said.

Shouting from the crowd, one told the mayor he should resign because he’s an “embarrassment.” Another called him “corrupt” and said he should be in handcuffs.

Hazel Dukes, 92, the former leader of the NAACP and an Adams supporter, yelled back to the protesters, “Will you shut up.”

Police circled the protesters as they chanted “abuse of power.”

Standing outside Gracie Mansion and surrounded by prominent Black clergy and civic leaders, Adams vowed to continue his mayoral duties and urged New Yorkers to wait to make any judgments until after he presents his defense.

“It’s an unfortunate day. And its a painful day,” he said. “But inside all of that is a day when we will finally reveal why, for 10 months, I’ve gone through this. And I look forward to defending myself.”

According to the indictment, Adams accepted tens of thousands of dollars in free flights and upgrades on Turkey’s national airline for him and his companions, stays in luxury hotel suites, as well as other amenities such as a car and driver, boat tour, a Turkish bath at a seaside hotel and high-end restaurant meals.

In 2019, while exchanging text messages to plan another possible to trip to Turkey, an Adams staffer texted the then-Borough President, “To be o(n the) safe side Please Delete all messages you send me,” according to the indictment.

According to prosecutors, Adams responded: “Always do.”

The indictment alleges Adams “compounded his gains” from the illegal contributions by gaming the city’s matching funds program, which provides a generous match for small dollar donations. His campaign received more than $10,000 in matching funds as a result of the false certifications, according to the indictment.

Adams allegedly “solicited and demanded” bribes, including free and heavily discounted luxury travel benefits from a Turkish official, the indictment alleges, noting that the official was seeking Adams’ help pertaining to regulations of the Turkish consulate in Manhattan.

Adams appears to be going about some usual business as he touted a new program to help affordable housing projects become more eco-friendly.

“We’re making sure that we don’t leave anyone behind as we build a greener, cleaner city for working-class New Yorkers,” the mayor said in a statement Thursday morning, without any mention of the indictment.

Adams is the first mayor in New York City history to be indicted while in office. If he were to resign, he would be replaced by the city’s public advocate, Jumaane Williams, who would then schedule a special election.

New York Gov. Kathy Hochul has the power to remove Adams from office. Hochul spokesperson Avi Small issued a statement late Wednesday that said “Governor Hochul is aware of these concerning news reports and is monitoring the situation. It would be premature to comment further until the matter is confirmed by law enforcement.”

His former chief of staff, Frank Carone, and deputy mayor for communications, Fabien Levy, were seen entering.

The mood at City Hall, roughly 30 minutes south, was notably quieter. As a gaggle of reporters typed in a press room, the side of the building used by the mayor’s staff was largely silent, with only a handful of aides walking in and out of the normally lively corridor. A portion of the outdoor plaza used as parking for municipal employees featured far fewer city vehicles than usual.

The U.S. attorney’s office in New York says it will announce “significant public corruption charges” at a news conference later Thursday morning.

The announcement came hours after federal agents entered the mayor’s official residence and seized his phone early Thursday, hours before the indictment was made public. The news conference is scheduled for 11:30 a.m. ET.

In a video speech released Wednesday night, Adams vowed to fights any charges against him, claiming he had been made a “target” in a case “based on lies.”

The indictment caps off an extraordinary few weeks in New York City, as federal investigators have homed in on members of Adams’ inner circle, producing a drum-beat of raids, subpoenas and high-level resignations that have thrust City Hall into crisis.

New York City Mayor Eric Adams’ lawyer is calling the large FBI presence at the mayor’s official residence Thursday morning an unnecessary show of force.

“They send a dozen agents to pick up a phone when we would have happily turned it in,” attorney Alex Spiro said in a statement.

Spiro said federal agents were at Gracie Mansion “in an effort to create a spectacle (again).”

Dozens of uniformed police officers as well as law enforcement agents in suits milled around the security gate. SUVs with darkened windows came and left, and officers could be seen bringing coffee and doughnuts inside.

New York City Mayor Eric Adams speaks during a news conference outside Gracie Mansion, Thursday, Sept. 26, 2024, in New York. (AP Photo/Yuki Iwamura)

This image taken from video released by New York City Office of the Mayor, Wednesday, Sept. 25, 2024, shows mayor Eric Adams speaking during a videotaped statement. (New York City Office of the Mayor via AP)

A vehicle drives out of Gracie Mansion, the official residence of New York City Mayor Eric Adams, Thursday, Sep. 26, 2024, in New York. (AP Photo/Yuki Iwamura)