The New York Stock Exchange opened higher on Thursday, supporting the records of the S&P 500 and Nasdaq indices, amid hopes for a resolution to the conflict in the Middle East and strong results from American companies.
In early trading, the Dow Jones index gained 0.33% to 48,611.31 points.
The broader S&P 500 rose by 0.16% to 7,035.40 points, after finishing the previous day at a record level.
The Nasdaq Composite is nearly unchanged at 24,010.63 points, also having set a record closing high on Wednesday.
This reflects a renewed appetite for risky assets amid hopes that the conflict in the Middle East will now be resolved through diplomacy.
As peace talks are expected between the United States and Iran, U.S. President Donald Trump also announced discussions between Israeli and Lebanese leaders later in the day.
A ceasefire in Lebanon could remove a major obstacle to broader peace efforts in the Middle East.
“Ongoing negotiations could lead to new twists and contradictory information, making trading conditions risky,” warned Lisa Shalett, Head of Investment at Morgan Stanley Wealth Management.
Meanwhile, the market looks towards the prospect of lasting peace as the VIX volatility index on Wall Street stabilizes around 18 points, after climbing to 35 points during the peak of the conflict.
Additionally, the earnings season, which is in full swing, provides new catalysts for investors. Most banks reporting financial results since the beginning of the week have exceeded expectations, highlighting consumer resilience and easing concerns about this engine of U.S. economic growth.
American beverage giant PepsiCo rose by 1% after reporting quarterly revenue above expectations on Thursday, while maintaining its annual targets.
Investors are awaiting the results and forecasts from Netflix after the close of Wall Street.
* For updates on stock values, click on the link.
(Written by Claude Chendjou, with input from Niket Nishant in Bangalore, edited by Blandine Hénault)
