Stock indexes opened sharply lower on Wall Street on Monday, but later broke into positive territory as US President Donald Trump said the war with Iran could end soon.
The Dow Jones gained 0.50 percent, to 47,740 points, while the S&P 500 rose 0.83 percent, to 6,795 points, and the Nasdaq index rose 1.38 percent, to 22,695 points.
Due to the strong rise in oil prices, which broke well above the level of 100 dollars per barrel, all world stock markets fell sharply yesterday because the rise in fuel prices could fuel inflation and harm the entire world economy.
Trading on Wall Street also began with a sharp drop in stock market indices, so they were in the red by more than 1 percent.
But after Trump said the US-Israeli war against Iran was ‘pretty much’ over and could last less than previously thought, in the last hour of trading, stock indexes recouped all losses and ended the day in positive territory.
– Such a reversal in price movements shows that investors are looking for every opportunity to return to the stock market. But there is still a lot of uncertainty in the market about the duration of the conflict, as well as how long the Strait of Hormuz will be closed, says Sam Stovall, strategist at CFRA Research, reports Hina.
As Iran said it would not allow tankers to pass through the passage, halting oil exports from the Middle East, oil prices jumped more than 25 percent early Monday morning, approaching $120 a barrel.
But they later fell because Trump threatened even stronger attacks on Iran if it does not allow passage through the strait. In addition, the media write that the White House is considering easing sanctions against Russia in order to increase the supply of oil on world markets.
Thanks to all of this, stock prices rose in nine of the 11 most important sectors of the S&P 500 index yesterday, and the most in the technology sector.
However, uncertain trading on world stock exchanges is expected in the coming days as well.
And on the European stock exchanges, share prices fell yesterday. The London FTSE index weakened by 0.34 percent, to 10,249 points, while the Frankfurt DAX slipped 0.77 percent, to 23,409 points, and the Paris CAC 0.98 percent, to 7,915 points.
