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"Ceasefire possible" US and Iran in rare accord fuel sharp rebound… Micron +5% [New York Stock Market Briefing]
Summary
- Major indexes including the Dow, S&P 500, and the Nasdaq posted a sharp rebound on expectations of a US-Iran ceasefire.
- The Philadelphia Semiconductor Index jumped 6.24%, with tech shares such as Nvidia, Intel, and Micron showing strength.
- Energy, which had risen on the Middle East war, fell, while the VIX sank and the possibility of a rate hike was effectively ruled out.
Forecast Trend Report by Period
Major indexes on Wall Street surged in a sharp rebound. The move came after US President Donald Trump and Iranian President Masoud Pezeshkian struck the same note in mentioning an end to the war.
On the 31st (local time), at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average jumped 1,125.37 points (2.49%) from the previous session to 46,341.51, the Standard & Poor’s (S&P) 500 gained 184.80 points (2.91%) to 6,528.52, and the Nasdaq Composite surged 795.99 points (3.83%) to 21,590.63.
Stocks rebounded sharply as ceasefire expectations flowed into the market.
President Trump repeatedly said ceasefire talks with Iran were going well.
President Pezeshkian, in a phone call with European Council President António Costa, said “the solution is to stop the attacks,” adding that “we are ready to end the war if there is a guarantee there will be no further attacks (by the US and Iran).”
At one point, the S&P 500 jumped nearly 50 points within five minutes.
Still, even as the US keeps talks going, it continues to prepare for a wider conflict. The US military on the day deployed its third aircraft carrier in this war—the Nimitz-class USS George H.W. Bush—along with its escort strike group to the Middle East. The USS Abraham Lincoln, previously deployed to the region, is operating in the Arabian Sea, while the USS Gerald R. Ford is moored at a Croatian port for repairs.
Most sectors rose on the day. Technology stocks in particular surged. The Philadelphia Semiconductor Index jumped 6.24%. Communication services and technology climbed 4%, while consumer discretionary and industrials rose more than 3%.
By contrast, energy—which had surged on the Middle East war—fell more than 1%.
By individual names, Nvidia rose 5.59%. Broadcom gained 5.54%, AMD 3.77%, and Intel 7.14%. Micron also added 4.93% despite Citigroup cutting its price target.
Social media platform Snap jumped more than 14% on news that an activist hedge fund increased its stake in the company.
Economic indicators released on the day failed to draw investors’ attention.
US job openings in February edged down, showing little overall change. According to the Job Openings and Labor Turnover Survey (JOLTS) released by the US Department of Labor, seasonally adjusted job openings came in at 6.882 million. The market estimate was 6.92 million.
According to the CME FedWatch Tool, the federal funds rate futures market priced in a 1.8% probability of a 25bp rate increase by December—effectively ruling out the possibility of a hike.
The Cboe Volatility Index (VIX) fell 5.36 points (17.51%) from the prior session to 25.25.
Han Kyung-woo, Hankyung.com reporter case@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
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