US Stocks Rise Amidst Renewed US-Iran Conflict and AI Growth
US stocks gained on Wednesday as investors balanced renewed hostilities between the United States and Iran with signs of strength in the artificial intelligence trade. The Dow Jones Industrial Average rose 0.8%, the S&P 500 climbed 0.6%, and the Nasdaq Composite rose 0.5%.
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Geopolitical tensions escalated as the US military launched a new round of strikes against Iran in retaliation for threats to the Strait of Hormuz. Iran responded by targeting US military sites in Jordan and Bahrain. These exchanges of fire have revived concerns regarding energy-driven inflation. In the technology sector, Dell Technologies reported record revenue and raised its annual profit and revenue forecasts due to a booming AI server business. Meanwhile, New York Fed President John Williams stated that there are no clear signs yet that a September rate hike is certain, though traders have increased bets on a hike. The administration announced a major oil deal in Venezuela, which will require approximately $100 billion in capital investment. Additionally, ADP data showed the US private sector added 38,000 jobs in August, falling below economist expectations.
Sources
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S&P 500, Dow rise as AI boost counters US-Iran tensions
The Detroit News
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Stock market today: Dow, S&P 500, Nasdaq futures mixed as US-Iran war escalates, inflation jitters return
Yahoo Finance