The New York Stock Exchange closed in the red on Thursday, weighed down by investors’ nervousness over growing uncertainties in the Middle East while keeping an eye on corporate results.
Following a double record for the Nasdaq and S&P 500 indices the previous day, they fell by 0.89% and 0.41% respectively. The Dow Jones, on the other hand, dropped by 0.36%.
According to Art Hogan from B. Riley Wealth Management, there is currently a tug-of-war between the strong fundamentals – with results better than expected so far – and the fact that news from the Strait of Hormuz hasn’t improved. He explained to AFP, “Today, it seems that the attention given to results has been overshadowed by the rise in energy prices.”
Oil prices continued to climb, with Brent surpassing $100 per barrel, due to “disappointment over the failure to reopen the Strait of Hormuz, combined with the tense expectation of upcoming negotiations” between Washington and Tehran, as stated by Carsten Fritsch from Commerzbank.
U.S. President Donald Trump mentioned on Thursday that he has “all the time in the world” in the Middle East conflict, where the current ceasefire between Tehran and Washington for the past two weeks seems fragile.
Regarding economic indicators, weekly jobless claims slightly exceeded expectations, but “it must be acknowledged that the demands remain very low compared to past standards,” according to Samuel Thombs from Pantheon Macroeconomics.
(source: AFP via Boursedirect)
