Gotrade News - US financial markets responded positively to signals of peace negotiations between Washington and Tehran on Wednesday (Apr 15). The Nasdaq Composite surged 1.60% to 24,016.02, marking its first 11-session winning streak since November 2021.
Key Takeaways
- Nasdaq gained 1.60% to a new record while the S&P 500 rose 0.80% and the Dow slipped 0.15%
- Brent crude barely moved up 0.1% to $94.93 per barrel as Strait of Hormuz disruptions persist
- Markets grew optimistic about US-Iran peace after Trump signaled the conflict is "nearly over"
The S&P 500 climbed 55.57 points or 0.80% to 7,022.95 at the close. The Dow Jones fell 72.27 points or 0.15% to 48,463.72 weighed down by consumer and industrial sectors.
The S&P 500 technology sector led gains with a 2.08% advance on the day. Broadcom rose 4.2% after Meta extended its custom chip partnership according to market data.
Peace Hopes Drive Market Sentiment
The White House stated that follow-up talks with Iran remain ongoing and are considered productive. President Trump signaled the conflict is "nearly over" and that Iran shows strong willingness to reach a deal.
Senior portfolio manager Thomas Martin noted investors had previously reduced risk exposure anticipating a worsening conflict. "Investors don't want to miss the market's upward momentum," he told Katadata.
Oil Supply Disruptions Linger
Brent crude edged up 14 cents or 0.1% to $94.93 per barrel as reported by Kompas. WTI crude rose just 1 cent to $91.29 per barrel indicating the market remains cautious.
The Strait of Hormuz which carries 20% of global oil and LNG shipments remains disrupted 45 days after its closure. Before the conflict over 130 ships transited daily but only a fraction currently operates according to Kpler analysts.
US crude stockpiles fell by 0.9 million barrels in the week ending April 10, defying expectations of a build. The US Energy Information Administration reported this decline adds to domestic supply pressures.
Bank of America gained 1.8% and Morgan Stanley rose 4.5% backed by first-quarter earnings growth. Falcon Wealth Planning CEO Gabriel Shahin described the prior correction as "more technical than driven by fundamental economic weakness."
