Index Dow Jones Industrial Average increases by 2.9% after the opening of the US session, S&P 500 increases by 2.6%, a Nasdaq Composite — by 3.3 percent The energy sector is losing – share prices of large companies in this sector are falling by 6-7%.
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The US and Iran have agreed a two-week ceasefire, raising hopes that more tankers will soon be able to pass through the crucial Strait of Hormuz.
The US-Iran ceasefire pleased Wall Street
Additionally, Donald Trump announced on Wednesday that the United States would work with Iran to remove nuclear materials from that country and that the two countries were discussing easing tariffs and sanctions against Iran.
Share prices of companies that have come under pressure this year are rising. Nvidia increases by over 3 percent, Tesla and Amazon grow by over 2%. Shares JPMorgan and Boeing they gain over 4%.
On the other hand, shares of energy companies, which had been rising rapidly since the beginning of the conflict, saw their prices decline Exxon Mobil fall by over 7 percent, and Chevron — by over 6 percent
See also: Navigation fees through the Strait of Hormuz. An important declaration by the Omani authorities
Oil price
Price WTI crude oilthe American benchmark, fell by 17 percent on Wednesday afternoon. up to $94 per barrel — still well above the level of $67. of February 27, before the outbreak of the war. Futures contracts on Brent crude oilthe global benchmark, fall by 16%. up to $92 per barrel.
US-Iran ceasefire
After the temporary ceasefire was implemented, the Chairman of the Joint Chiefs of Staff, General Dan Caine, praised the cessation of fighting, but added: “Let's be clear, a ceasefire is a pause and the armed forces remain on standby.”
See also: The World Bank dispels illusions. How will the war in Iran affect Poland's development?
Despite market optimism, the ceasefire remains uncertain, particularly as regards the rapid resumption of transit through the Strait of Hormuz, through which approximately 20% of trade normally passes. world supplies of crude oil.
“The market is eagerly awaiting good news, but it is still unclear whether the Strait of Hormuz will fully open,” Bob McNally, founder and president of Rapidan Energy Group, told CNN.
The CBOE Volatility Index, which tracks expectations for the volatility of the S&P 500 Index over the next 30 days, fell to 20.4 on Wednesday, indicating increased expectations for the market to calm down over the next month, writes CNBC.
Source: CNBC, CNN, Business Insider Polska
