Wall Street Held Back Amid War Risks
US stock markets moved mixed on Wednesday (July 8th) after being pressured by concerns about an escalating US-Iran war. Initial pressure came from rising energy prices, but the major indexes managed to pare most of their losses by the close.
The tech-dominated Nasdaq 100 closed up 0.3%, while the S&P 500 fell 0.3%. Previously, the S&P 500 had fallen as much as 1.1% and was approaching its 50-day moving average. The materials, consumer discretionary, and financial sectors were the main market drags.
Energy stocks were the exception, rallying after President Donald Trump said the temporary ceasefire with Iran was over. This statement came after the US launched new attacks on Iran and revoked permits that previously allowed Iranian oil sales. Brent crude rose 5.9%, pushing stocks like Chevron, Venture Global, and Diamondback Energy higher.
The main risk to the market now comes from inflation. Rising oil prices could trigger new price pressures and prompt the Federal Reserve to reconsider raising interest rates. The June FOMC minutes also showed that several Fed officials saw reasons to raise interest rates, although they ultimately agreed to hold rates.
Meanwhile, the US stock market remains buoyed by expectations for second-quarter earnings reports. Investors are still monitoring whether the rally in semiconductor and AI-related companies can continue. If corporate earnings reports are strong, positive sentiment could again support the index, even though geopolitical risks remain high.
Among individual stocks, Bloom Energy weakened after a negative report from Hunterbrook Media. Alcoa and Vale also fell after Morgan Stanley cut their recommendations on both stocks. Conversely, Dollar Tree strengthened after receiving upgrades from Raymond James and Goldman Sachs. Apple also gained attention after expanding its partnership with Broadcom, while OpenAI is preparing to release its most advanced model more widely. (arl)
Source: Newsmaker.id
