Stock Market Roundup- Nasdaq Flat as Trump Says No to Iran Proposal
Quick overview
- U.S. stock indices showed little movement as President Trump rejected Iran's proposal to end conflict, causing oil prices to rise.
- Despite the market's muted response, indices remain near record highs, with the Nasdaq and S&P 500 recently setting new records.
- Technology stocks, particularly Advanced Micro Devices and Nvidia, are performing well amid growing interest in the AI market.
- A positive nonfarm payrolls report indicating 115,000 new jobs added in April suggests a recovering economy, potentially leading to a future interest rate cut.
The U.S. stock indices changed little Monday morning as the market opened to contemplate what it means for President Donald Trump to reject Iran’s proposal to end conflict.
The Nasdaq stayed flat on Thursday while the S&P 500 ticked up just 0.23%. The Dow Jones added just 0.16% as stock movement remained muted following Trump’s dismissal of Iran’s offer to end hostilities in the Middle East. That development caused oil prices to jump.
West Texas Intermediate rates climbed 1% and reached $96 per barrel, and Brent crude added 2% and are now at $102 per barrel. These prices have fluctuated wildly all throughout the months of conflict in Iran, creating an unstable situation for investors and the stock market.
Market Remains Near Record Highs
Despite little movement from the stock market today, indices are close to record highs. Both the Nasdaq and S&P 500 set fresh records on Friday, and they have held onto those gains so far this week. The Dow is also close to its record high but did not perform as well as the Nasdaq and S&P 500, which climbed 4% and 2%, respectively last week.
President Trump said that the Iran proposal was “Totally Unacceptable!” when posting to social media this week. There is still concern that more fighting will break out and that negotiations will break down between the two countries, but the stock market seems hopeful that the situation will remain mostly calm for now.
The stocks performing the best for now are still those from the technology sector. Advanced Micro Devices (AMD) is on a remarkable surge, gaining more than 100 points since last week.
Nvidia (NVDA) is also performing well, gaining 2.7% on Monday after adding more than 20 points over the past week. Investors should expect tech stocks to continue to stay bullish as the AI market and related areas of the tech sector experience a rally due to growing interest, rapid expansion, and promising quarterly reports. Nvidia is preparing to release its quarterly earnings, and investors are bullish on this stock and the entire sector in anticipation.
Stocks are also performing well thanks to a positive nonfarm payrolls report that was posted on Friday. 115,000 new jobs were added in April, pointing toward a recovering economy and the potential for inflation to drop slightly in the coming months. That could pave the way for a new interest rate cut, especially if current Fed Chairman Jerome Powell exits soon.
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