US stocks traded near record levels on Tuesday, as falling oil prices and optimism over the US-Iran peace deal boosted investor sentiment, pushing the Dow Jones Industrial Average to an intraday high.The Dow rose 360.77 points, or 0.70 percent, to 52,031.80 in morning trading, setting a new intraday record.The S&P 500 rose 7.49 points, or 0.10 percent, to 7,561.78, while the Nasdaq Composite added 35.07 points, or 0.13 percent, to 26,719.01.However, the AP reported that markets remained mixed later, with the S&P 500 slipping 0.2 percent and the Nasdaq falling 0.4 percent, while the Dow was about 292 points higher.
Oil prices fall on US-Iran optimism
Investor confidence was supported by another fall in crude oil prices after a temporary agreement between the United States and Iran aimed at reopening the Strait of Hormuz, one of the world’s most important energy shipping routes.Brent crude fell 3.6 percent to about $80.20 a barrel, after briefly falling below $80 for the first time since early March.The energy sector declined 0.4 percent as oil prices hit a nearly three-month low.While the agreement has boosted market sentiment, uncertainty remains over key issues including Iran’s nuclear program and the timeline for restoring full shipping operations through the strait.
spacex Rally extends, becomes fifth most valuable American company
SpaceX remains in focus after its blockbuster stock market debut. Shares rose 7 to 9.5 percent on Tuesday, taking the company’s market value above Amazon and making it the fifth most valuable US-listed company.SpaceX also announced plans to acquire software firm Anisphere for $60 billion as it looks to expand its presence in the enterprise artificial intelligence market.
Bank, chip stocks rise
Financial stocks led the rise on Wall Street, with the S&P financial index rising 1.1 percent.Goldman Sachs rose 1.3 percent, while JPMorgan Chase and Bank of America added 1.8 percent and 1.2 percent, respectively.Memory-chip makers also advanced, with Western Digital jumping 9 percent and Seagate Technology gaining 6 percent.Qualcomm rose 3.6 percent after a report said it was in talks to acquire AI chip startup Tencent for between $8 billion and $10 billion.
Fed decision in focus
Investors are now awaiting the US Federal Reserve’s policy decision on Wednesday, the first under new Fed Chairman Kevin Warsh.The central bank is widely expected to keep interest rates unchanged at 3.50-3.75 percent, according to Reuters.According to CME Group’s FedWatch tool, traders currently see a 42 percent chance of a 25-basis-point rate hike in December.“All eyes are on Wersch’s press conference, guidance and expectations for the market,” Great Hill Capital Chairman Thomas Hess told Reuters.Meanwhile, Treasury yields edged lower, with the 10-year Treasury yield falling to 4.45 percent from 4.47 percent late Monday.Market sentiment remained positive, with gainers outnumbering decliners on the New York Stock Exchange by two to one.