The S&P 500 experienced a modest increase of 0.25%, closing at 6,716.09, while the Nasdaq Composite saw a slightly higher gain of 0.47%, reaching 22,479.53. Meanwhile, the Dow Jones Industrial Average edged up by 0.10% to settle at 46,993.26. These upward movements in the stock market occur despite escalating oil prices, as investors seem to be shifting their focus away from the ongoing conflict in Iran.
Ahead of its earnings report, Micron Technology rallied, driven by optimism surrounding memory chip demand. Similarly, Uber Technologies enjoyed gains following the announcement of an extended partnership in the robotaxi sector with Nvidia. Qualcomm also experienced positive momentum as it revealed a significant $20 billion stock buyback, along with a boost to its dividend.
Conversely, Eli Lilly faced setbacks after HSBC downgraded its stock from “hold” to “reduce,” citing reduced forecasts for its obesity drug offerings. In addition, The Trade Desk experienced a slip in its stock value during the final hours of trading. However, airline stocks showed resilience, buoyed by Delta’s decision to raise its revenue forecast.
The Federal Reserve commenced its two-day meeting amid a backdrop of geopolitical tension and surging energy costs, with expectations that interest rates will remain unchanged. Market participants are keenly anticipating remarks from Chair Jerome Powell, particularly looking for insights regarding current economic conditions and any potential future changes to interest rates.
The ongoing conflict in Iran, which has now entered its third week, continues to exert pressure on investor confidence. Nevertheless, the slight market gains today—despite crude oil prices surpassing $100 a barrel—indicate that traders are beginning to look past the immediate ramifications of the conflict.
A recent Global Fund Manager Survey from Bank of America reflects a cautious sentiment prevailing among fund managers. Released today, the survey reveals growing concerns regarding global economic growth and rising inflation, with a noticeable increase in cash allocations as private credit concerns loom.
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