Stock Market Update
Traders were busy on the floor of the New York Stock Exchange as U.S. stock futures showed little change Wednesday night after two days of trading. Both the S&P 500 and Nasdaq Composite set new records during the regular session.
The S&P 500 futures and Nasdaq 100 futures each increased by 0.1%. Meanwhile, futures linked to the Dow Jones Industrial Average rose slightly by 59 points (also 0.1%).
In formal trading earlier, the S&P 500 and tech-heavy Nasdaq reached all-time highs with the market index overall gaining 0.80%. The Nasdaq Composite Index climbed 1.59%, marking its 11th consecutive increase. On the other hand, the Dow fell by 72.27 points (0.15%).
Recent stock price increases have been partially attributed to hopes for a peace agreement between the U.S. and Iran. In an interview with Fox Business on Wednesday, President Trump mentioned that the Iran conflict is “very close to ending” and emphasized Tehran’s desire for “a very bad deal.”
A White House official, speaking on the condition of anonymity, indicated to CNBC on Tuesday that talks for a second round of negotiations between Washington and Iran are being considered, although no formal plans have been established.
Notably, on Monday, the S&P 500 erased all prior losses incurred since the onset of the Iran conflict.
“We’re essentially back to the sentiment and valuations we saw in late February,” Tim Hayes, chief global investment strategist at Ned Davis Research, said during a segment on CNBC. “If we’re going to continue rising, the market may need broader participation beyond just the Nasdaq.” However, Hayes warned investors might be getting a bit too eager with these gains.
“I’m feeling a bit more cautious now,” he added. “The stocks have rebounded quickly, but whether that trend will continue is uncertain.”
Several companies, including PepsiCo, Travelers, US Bancorp, Abbott Laboratories, and Charles Schwab, are expected to report their earnings before the market opens on Thursday. Traders will also keep an eye on the weekly jobless claims numbers and upcoming data regarding March’s capacity utilization and industrial production.
