The Monday session at Wall Street ended with moderate increases in the main indexes, because investors hope that the armed conflict between Israel and Iran will soon end with some form of agreement.
Dow Jones Industrial at the closure increased by 0.75 percent. and amounted to 42,515.09 points
S&P 500 gained 0.94 percent at the end of the day and amounted to 6,033.11 points
Nasdaq Composite increased by 1.52 percent Up to 19,701.21 points
The index of companies with medium capitalization Russell 2000 is growing by 1.12 percent. Up to 2,124.13 points
The VIX index drops by 8.21 percent, to 19.11 points
In the center of investors' attention, there are reports of geopolitics after Israel's attack on Iran.
“The market is comforted by the perspective that the conflict may remain limited,” Krishn Guha wrote on Monday, vice president of Evercore ISI.
“We assess that this is possible, but in the base scenario we still anticipate that the conflict will last a few weeks and we see an increased risk of escalation,” he added.
On Sunday, US President Donald Trump said that there are good chances that Israel's agreement with Iran would come. “There will soon be peace between Israel and Iran,” Social Truth wrote on social media. “There are currently many phone calls and meetings,” he added.
Meanwhile, The War Zone said on Monday that over 20 flying air tankers KC-135 and KC-46 set off from the USA bases to bases in Europe and the Middle East on Sunday. The movement of the machines provoked speculation about the possible participation of the US forces in the war of Israel with Iran.
Wall Street Journal announced that Iran signaled by intermediaries, that he was open to the resumption of negotiations, unless the US joins Israel in attacks. The report also states that Iran sent a message to Israel that both sides should limit the attacks.
Iran turned to Saudi Arabia and other Arab countries with a request to send President Donald Trump information about putting pressure on Israel, so that he would immediately suspend their weapons. Iran also offers a resumption of negotiations on a nuclear agreement, “Reuters said, citing its sources.
The attacks lasted the fourth day on Monday, and both countries attacked each other's energy facilities, which is an escalation, which can shake the world economy and markets even more in the coming week. Iran said he was considering closing the Strait of the Ormuz, a key trail for the global oil market. Israel claimed on Monday that he had achieved “air advantage” over Iran, according to a military spokesman.
The “wonderful seven” shares increased on Monday because investors took a greater risk again. Tesla increased by over 1 percent, and Meta Platforms gained over 2 percent. Meanwhile, Palantir, which is perceived as a beneficiary of growing conflicts in the world, increased by more than 3 percent.
Term contracts for federal funds value 100 percent. The probability of maintaining interest rates by the central bank at an unchanged level, according to the CME Group Fedwatch tool, even when Trump presses the president of the Federal Reserve Jerome Powell to lower interest rates.
According to analysts, higher oil prices due to a conflict in the Middle East probably reduce the chances of relieving monetary policy by the federal reserve in the near future.
The New York (Empire Manufacturing) production activity index in June fell to -16.0 points. from -9.2 points a month earlier. Analysts expected the index to be -6.3 points.
WTI oil on nymex in supplies for July dropped by 2.30 percent. up to USD 71.30 per barrel, and Brent on ICE loses 1.91 percent and is 72.81 USD per barrel. (PAP Biznes)
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