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S&P 500, Nasdaq Set Fresh Intraday Records on Hopes for Second Mideast Peace Talks

Source

YM Lee

Summary

The S&P 500 Index and the Nasdaq Composite extended gains on hopes for a second round of negotiations to end the war in the Middle East, setting fresh intraday records.
Energy and real estate led the advance with gains of more than 1%%, while health care, industrials, financials, and consumer discretionary shares declined.
Netflix, AMD, Charles Schwab, and Intel moved in different directions on earnings and target-price revisions, while the VIX index fell.

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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 on July 5. Photo: Kim Beom-jun, New York*

Major US stock indexes extended their gains on July 16 as optimism grew over a second round of talks to end the war in the Middle East.

At the New York Stock Exchange, the Dow Jones Industrial Average rose 115.00 points, or 0.24%, to 48,578.72. The S&P 500 gained 18.33 points, or 0.26%, to 7,041.28, while the Nasdaq Composite added 86.69 points, or 0.36%, to 24,102.70.

The S&P 500 hit another intraday record of 7,051.23, and the Nasdaq touched a fresh high of 24,156.18.

President Donald Trump wrote on social media that a ceasefire would begin at 5 p.m. Eastern Time that day and that he would invite Israeli Prime Minister Benjamin Netanyahu and Lebanese President Joseph Aoun to the White House. His announcement of a ceasefire with Lebanon before approval by Israel's cabinet triggered backlash within Israel.

Trump also said he was highly optimistic about peace negotiations with Iran and that a second round of talks could be held this weekend.

By sector, health care, industrials, financials and consumer discretionary stocks fell. Energy and real estate climbed more than 1%.

Netflix fell nearly 9% in after-hours trading. The company reported solid first-quarter results after the close, but its second-quarter revenue forecast came in below expectations.

AMD surged more than 7% after Bernstein raised its price target.

Charles Schwab dropped more than 7%. First-quarter profit reached a record, but revenue missed market estimates.

Intel rose 5.48% as hopes for improved earnings continued to lift the stock.

According to CME Group's FedWatch tool, fed funds futures priced in a 26.7% chance of a 25-basis-point rate cut by the end of December, little changed from the previous session.

The Cboe Volatility Index, or VIX, fell 0.23 point, or 1.27%, to 17.94.

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