NEW YORK.—The United States stock market this Monday registered a day of strong oscillations and ended with profits, after recovering from initial losses driven by expectations that the conflict between the United States and Iran may not be prolonged. The statements of the American President Donald Trumpand the subsequent drop in oil prices contributed to stabilizing investor sentiment towards the closing of operations.
He S&P 500 index It fell by up to 1.5% during the session, but ended with an advance of 0.8%, equivalent to 55.97 points, to stand at 6,795.99 units. The industrial average Dow Jones It also reversed losses close to 900 points and closed with a gain of 239.25 units, or 0.5%, at 47,740.80 points. The Nasdaq composite rose 1.4%, adding 308.27 units and ending at 22,695.95 points.
The market recovery was concentrated in the last hour of trading, after Trump told CBS News that he considers “the war very complete,” a comment that temporarily reduced concerns about a possible prolonged escalation of the conflict in the Middle East.
During the morning, the markets reacted to the volatility of oil. International benchmark Brent crude briefly hit $119.50 a barrel, its highest level since 2022, before retreating to close at $98.96. It subsequently continued to decline below $90. Benchmark U.S. oil also hit $119.48 a barrel before closing at $94.77.
Reflected uncertainty
Las variations reflect uncertainty about the impact the war could have on global energy supplies, particularly in the Strait of Hormuza strategic passage off the coast of Iran through which approximately a fifth of the world’s oil circulates.
Iran has warned that it could attack vessels in that sea lane.
Analysts have pointed out that a prolonged closure of the strait could raise the price of crude oil to 150 dollars per barrel. Macquarie Research Strategists They warned that even a few weeks of disruption would have significant repercussions on energy markets.
Volatility also responds to concerns about inflation and economic growth. Expensive oil would put pressure on family budgets and raise costs for companies, increasing the risk of a “stagflation” scenario, characterized by low economic growth and high inflation.
However, some investors believe that the recent declines in stocks may represent buying opportunities. Sameer Samana, head of global equities and real assets at Wells Fargo Investment Institutenoted that “the current oil shortage will reverse in the coming months as new supply enters and oil falls significantly.”
Despite recent volatility, the S&P 500 remains less than 3% from its all-time high reached in January.
Leave a Reply