Tuesday's session on Wall Street ended with minor changes in the main indices, and the markets saw an improvement in sentiment amid expectations that the war between the US and Israel with Iran may end soon.
The Dow Jones Industrial dropped 0.07 percent at the close. and amounted to 47,706.51 points.
The S&P 500 fell by 0.21% at the end of the day. and amounted to 6,781.48 points.
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The Nasdaq Composite increased by 0.01%. up to 22,697.10 points
The Russell 2000 index of mid-cap companies fell 0.22%. and amounts to 2,548.08 points.
The VIX index falls by 2.24%. up to 24.93 points
Global markets saw an improvement in sentiment after US President Donald Trump suggested on Monday in an interview with CBS News that the war with Iran may soon end. He also did not rule out taking over the Strait of Hormuz.
“It really shows how much the markets are literally hanging on Trump's every word. We are still very much on the topic of volatility. Markets remain volatile because they are still influenced by the information coming in. And that of course means that any comment can influence the market one way or the other,” said Fiona Cincotta, senior market analyst at City Index.
“There is still a risk that the conflict or disruptions to global oil supplies may last longer than President Trump would like, because their outcome does not depend solely on U.S. military plans,” MUFG analysts wrote in the report.
Oil prices, which rose to nearly $120 a barrel on Monday at the height of concerns over a conflict with Iran, fell as investors thought the group of countries would dip into emergency oil reserves to ease disruption from the conflict.
Prices fell further after Energy Secretary Chris Wright, in a later deleted social media post, said the U.S. Navy was able to escort the tanker through the Strait of Hormuz. However, after the post was removed, oil prices recovered slightly from their lows and stocks fell below intraday highs.
White House press secretary Karoline Leavitt said Tuesday that the United States had not actually escorted any tanker through the Strait.
Sentiment was also negatively affected by a CBS News report that the US was beginning to see signs that Iran intended to place mines in the Strait.
Defense Secretary Pete Hegseth said Tuesday that “today will be our most intense day of attacks on Iran.” He also added that Iran “suffers a severe defeat.”
Mike Sanders of Madison Investments predicts that if oil prices fall back into the $70-$60 range, it won't have a major impact on the economy.
“If we can maintain high levels – which should probably be a little bit more profitable in the market given all this uncertainty – I think that will make a difference,” the portfolio manager said.
Sales of homes on the secondary market in the US in February amounted to 4.09 million on an annual basis vs. the expected 3.88 million – reported the National Association of Realtors. A month earlier, the indicator amounted to 4.02 million, after correction.
In month-to-month terms, the indicator increased by 1.7%. compared to -5.9 percent a month earlier, after the revision. Expected -0.8 percent
In the USA, the optimism index among small entrepreneurs dropped to 98.8 points in February. with 99.3 points a month earlier – informed the National Federation of Independent Business (NFIB). Analysts expected the index to reach 99.6 points.
On the oil market, WTI contracts for April are down by 8.84%. to USD 86.39 per barrel, and May Brent futures fall by 7.82%. up to USD 91.29/b. (PAP)
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