PiCK

Wall Street Rebounds as Hopes Rise for Continued US-Iran Ceasefire Talks

Source

Korea Economic Daily

Summary

Hopes that US-Iran ceasefire talks were continuing behind the scenes helped all three major indexes on Wall Street close higher.
Technology and financials led gains with advances of more than 1%%, while megacap tech shares including Microsoft, Broadcom, Alphabet, Oracle, and Intel were strong.
According to CME's FedWatch tool, the odds of the benchmark rate remaining unchanged by year-end fell while bets on a 25-basis-point cut increased, and the VIX index edged lower.

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*SEC Chair Gary Gensler appears on a broadcast before ringing the ceremonial opening bell at the New York Stock Exchange in New York. Photo: Kim Beom-jun*

The three major US stock indexes all closed higher in New York, helped by hopes that US-Iran ceasefire talks were continuing behind the scenes after collapsing over the weekend.

On June 13, the Dow Jones Industrial Average rose 301.68 points, or 0.63%, to 48,218.25 on the New York Stock Exchange. The S&P 500 gained 69.35 points, or 1.02%, to 6,886.24, while the Nasdaq Composite added 280.84 points, or 1.23%, to 23,183.74.

Stocks traded lower early in the session on concerns over the breakdown in negotiations and the risk of a counter-blockade of the Strait of Hormuz. Buying interest returned after reports that the US and Iran were keeping back-channel communications open and exchanging conditions for a ceasefire even after the talks broke down.

President Donald Trump said, "Iran contacted us today" and said it strongly wanted a deal. The three major indexes turned higher and extended their gains as more detailed discussions related to Iran's nuclear program emerged.

By sector, utilities and consumer staples each fell more than 1%, while all other sectors advanced. Financials rose 1.73% and technology gained 1.72%.

Among technology companies with market capitalizations above $1 trillion, Microsoft climbed 3.64%, while Broadcom and Alphabet also rose about 2%.

Oracle jumped more than 12% after unveiling multiple artificial intelligence platforms at a conference that day.

Goldman Sachs fell 1.35% despite strong first-quarter earnings, as its bond-trading business missed estimates.

Intel rose 4.49%, extending its rally to a ninth straight session. The stock has gained 56% over that stretch.

According to CME's FedWatch tool, the federal funds futures market priced in a 69.5% chance that the benchmark interest rate would remain unchanged through the end of December this year, down from 75.6% late in the previous session.

At the same time, bets on a 25-basis-point rate cut rose to 26.3% from 21.1%.

The Cboe Volatility Index, or VIX, fell 0.11 point, or 0.57%, to 19.12.

Han Gyeong-woo, Hankyung.com reporter case@hankyung.com