US Stocks today: Dow Jones soars 1,125 points, Nasdaq, S&P 3% as Iran war de-escalation seen
Why it matters: The Dow Jones Industrial Average soared 1,125 points, signaling investor relief over potential Iran war de-escalation.
- Dow Jones Industrial Average rose 1,125.07 points, or 2.49%, to 46,341.21, while the S&P 500 gained 2.92% and the Nasdaq Composite climbed 3.83%.
- Investors are speculating on an "earlier off-ramp, or a cessation of hostilities" in the Iran war, according to Bill Northey of U.S. Bank Wealth Management, hoping for a more normal flow of energy through the Strait of Hormuz.
- Nvidia, Alphabet, Meta Platforms, and Amazon all made significant gains, with the PHLX chip index also jumping, despite prior concerns that these heavyweights were taking too long to show results from massive AI spending.
- CoreWeave rallied after securing an $8.5 billion loan to expand AI infrastructure, and Marvell Technology surged after Nvidia invested $2 billion in the firm.
- The month-long war had previously put the S&P 500 and Dow on track for their deepest quarterly declines since 2022, with the Dow and Nasdaq recently confirming corrections by ending 10% below their record highs.
- Money market traders now believe the Fed is more likely to raise interest rates by year-end than lower them, according to CME Group's FedWatch Tool, due to revived inflation worries from the oil spike.
- Unilever agreed to separate its food unit and merge it with McCormick in a cash-and-stock deal, valuing the spice maker at about $44.8 billion, causing McCormick shares to fall.
U.S. stocks surged today, with the Dow Jones soaring 1,125 points and the Nasdaq and S&P 500 each gaining over 3%, driven by investor speculation of a de-escalation in the Iran war. This rally comes despite a month-long conflict that had put the S&P 500 and Dow on track for their deepest quarterly declines since 2022, fueled by worries over higher fuel costs and potential Fed interest rate hikes.
