The S&P 500 rose by 0.25%, closing at 6,716.09, while the Nasdaq Composite saw a gain of 0.47%, finishing at 22,479.53. The Dow Jones Industrial Average inched up 0.10% to settle at 46,993.26. These gains occurred despite an uptick in oil prices, as traders appeared to be looking beyond the ongoing conflict in Iran.
Key market movers included Micron Technology, which surged by 4.44% ahead of its earnings report, buoyed by optimism surrounding memory chip demand. Uber Technologies also experienced a 4.26% increase following the announcement of a new partnership for robotaxi services with Nvidia. Qualcomm enjoyed a boost of 1.62% thanks to a recently announced $20 billion stock buyback and a dividend increase.
In contrast, Eli Lilly faced a significant drop of 5.82% after HSBC downgraded its stock from “hold” to “reduce,” along with a downward revision of its obesity drug forecasts. The Trade Desk experienced a decline of 7.44% in the closing hours of trading. On a positive note, airline stocks gained traction after Delta Air Lines raised its revenue forecast, with shares climbing by 6.71%.
Investors are closely monitoring the Federal Reserve, which began its two-day meeting amid geopolitical tensions and high energy costs. Most analysts expect the Fed to hold interest rates steady, while all eyes are on Chair Jerome Powell’s remarks for insights into economic conditions and potential future rate shifts. The ongoing conflict in Iran, now in its third week, continues to weigh on investor sentiment. However, today’s modest gains—despite crude oil prices surpassing $100 a barrel—indicate a shift in focus towards longer-term market stability.
Reflecting this cautious sentiment, Bank of America’s latest Global Fund Manager Survey, released today, highlights fund managers’ concerns regarding global economic growth and rising inflation. Many are increasing their cash allocations amid worries about private credit.
As these market dynamics unfold, investment strategies are likely being reassessed by both institutional and retail investors, indicating a complex landscape ahead.
