Investing.com — US stocks traded higher on Wednesday as oil prices pulled back from recent peaks, with Brent crude settling around $97 per barrel after touching $117 just three days earlier, according to Goldman Sachs midday market intelligence.

The calmer commodity markets helped ease pressure on stocks and bonds. The declined to around 26, while yields on 10-year Treasuries fell to 4.32%. Both measures remain elevated from pre-conflict levels but show signs of moderation.

Data releases continued to take a back seat to geopolitical developments, with February economic indicators overshadowed by ongoing uncertainty. The conflict’s market impact centers on two fundamental drivers: growth and inflation.

On the inflation front, Wednesday’s February trade prices report showed core import prices rose 1.2% month-over-month, above expectations. The increase partially reflected a large rise in imported computer accessories excluding semiconductors, higher metals prices, and lagged effects of dollar depreciation. Goldman Sachs now estimates Core PCE inflation rose 2.93% in February.

The inflation picture is also being shaped by tariffs implemented by the Trump Administration starting a year ago, according to the report.

In the hotel industry, RevPAR grew 4.9% year-over-year last week, sustaining positive momentum first seen in February. However, prediction markets currently assign a 60% probability that the energy crisis will last through mid-May, which could quickly diminish the strength seen in hotel demand.

Hotel stocks traded higher on Wednesday, particularly REITs that own physical hotels and benefit from lower rates.

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