Investors have flocked again to tech shares, lifting the Nasdaq by 1.3 percent and keeping the tech-heavy index in positive territory, since the US-Israeli strike on Iran which ignited the conflict in the Middle East.
Trump’s announcements of a US naval escort for oil tankers through the Strait of Hormuz and political risk insurance also brought some relief.
The White House announcement reduced fears of major disruptions in the oil market which could lift energy prices and pressure inflation, said Jim Awad, senior managing director at Clearstead Advisors LLC in New York.
The relief gave investors confidence to scoop up tech-related stocks that sold off heavily in February and were cheap compared with weeks ago, he said.
“That combination is giving the market some optimism, which will be tested over the coming weeks,” Awad said. “It is time to be realistic and not get carried away, either too bullishly or too bearishly.”
Oil prices have moderated. After briefly topping US$84, the price for a barrel of Brent crude, the international standard, settled at US$81.40, back to where it was a day earlier.
Stocks also got a boost from signs of strength for the US economy. One report said growth for US businesses in the real estate, finance and other services industries accelerated last month at the fastest pace since the summer of 2022.
A second report suggested US employers outside of the government picked up their hiring last month.
The Nasdaq rose 1.3 percent, to 22,807, the S&P 500 rose 0.8 percent, to 6,869, while the Dow rose 0.5 percent, to 48,739. (Agencies)
Edited by Cecil Wong
