The Dow Jones increased by 0.89%, the Nasdaq advances by 0.94%and the enlarged S&P 500 index rises by 0.96%.
The New York Stock Exchange ended up on Monday, benefiting from the sharp drop in oil prices after Iran’s limited attack against a military base in the United States in Qatar.
The Dow Jones won 0.89%, the NASDAQ index took 0.94%and the enlarged S&P 500 index advanced by 0.96%.
As for several days in the American square, “predominant history has revolved around the Israeli-Iranian conflict”, comments with AFP Patrick O’Hare, from Briefing.com.
After a weekend marked by American strikes in Iran, Wall Street approached the week in small increases, and “lost its momentum in the face of press information ensuring that Iran was preparing for reprisals,” said the analyst.
“When we learned that Iran had alerted the authorities of the imminence of an attack, that its missiles had been intercepted and that there had been no deaths or injured on the American basis in Qatar, the market has straightened up in a movement of appeasement,” said O’Hare.
It was at the level of oil that the reaction was the strongest: the prices of the barrels of WTI and Brent, the two references on the market, fell by more than 7% to return to the levels to which they evolved before the first Israeli strikes in Iran, on June 13.
A decrease in black gold prices is generally seen as good news on the economic level because it makes manufacturing and transport processes less expensive.
“The market thinks basically that this is a relatively low response from Iran and it also made it think that there may be no new escalation with the United States,” judges Patrick O’Hare.
Mainly pulled by this geopolitical respite, the American place also optimized the remarks “of the governor of the Federal Reserve (Fed) Michelle Bowman who declared that it could support a drop in rates in July if the inflationary pressures remained contained”, adds Mr. O’Hare.
Last Friday, another member of the Fed, Christopher Waller, had already mentioned a drop in interest rate at the end of July.
The majority of analysts, however, still expect the monetary institution to reduce its rates in September, according to the CME monitoring tool, Fedwatch.
In this context, on the bond market, the return on American state loans at 10 years old was still relaxing, at 4.34%, against 4.38% at the end on Friday.
On the table of values, companies in the petroleum sector lost in power in the face of the fall in black gold prices like Exxon Mobil (-2.62%) or Chevron (-1.81%).
The Tesla electric pioneer jumped 8.23% to 348.68 dollars the day after the launch of its first driver service in Texas, considered a success by its boss Elon Musk.
The values ​​associated with nuclear nuclear were sought after the governor of New York State, Kathy Hochul, announced Monday that she initiated the project of a new nuclear power plant, in a country that has not seen any construction in the sector since 2009. Constellation Energy has taken 3.37%, Centrus Energy 1.35%and Uranium Energy 2.01%.
