Stocks - Nasdaq Hits Record Highs as Trump Holds off Military Action on Iran
Investing.com
Published Jan 08, 2020 03:30PM ET
Updated Jan 08, 2020 04:06PM ET
Investing.com – The Nasdaq notched a record close Wednesday after President Donald Trump's remarks stoked hopes of an end to rising U.S.-Iran tensions, easing fears of direct military conflict in the Middle East.
The S&P 500 gained 0.48%, while the Nasdaq Composite rose 0.67% and the Dow Jones Industrial Average climbed 0.56%.
A sigh of relief swept through the broader market as Trump opted to impose new economic sanctions on Iran rather than call for military action against the Islamic Republic.
"Iran appears to be standing down, which is a good thing for all parties concerned," Trump said in a speech following Iran's strikes on several U.S. military bases.
"The fact that we have this great military and equipment, however, does not mean we have to use it," the president added.
Rising hopes that both nations will seek to de-escalate tensions reduced expectations of oil supply disruption in the Middle East, sending oil prices plunging 5% and keeping energy stocks in red.
Ahead of the speech, oil prices were on the back foot following an unexpected build in weekly crude supplies.
But the plunge in energy was more than offset by a rally in tech, underpinned by gains in Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) amid bullish remarks from Wall Street.
Morgan Stanley raised its target on Microsoft (NASDAQ:MSFT) to $189 from $157, on expectations that the tech giant is set to deliver strong performance in the coming year.
Wedbush, meanwhile, said robust iPhone 11 sales during the holiday season and strong AirPods performance should lead to "clear upside" in Apple's upcoming quarterly earnings report.
Boeing (NYSE:BA), however, failed to join the broad-based rally, falling 1% after Cowen downgraded shares of the aircraft maker and concerns over its operational fleet continued after one of its jets was involved in a fatal crash in Iran.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.