Weekend Attacks in Iran Halt, Allowing Nasdaq to Jump 1.2%

Quick overview

Over the weekend, Iran and the United States exchanged fire, but they have since stopped their assaults, and the stock market indices rose Monday on the news.

Peace talks are resuming between the U.S. and Iran after a weekend exchange of fire. Stock markets reacted by climbing Monday morning, with the Nasdaq up 1.2%, the Dow adding 0.4%, and the S&P 500 gaining 0.8%. This is a step up from last week’s close, which ended in losses for both the S&P 500 and the Nasdaq.

Tech stocks are expected to do very well this week, especially if Iran and the U.S. can stop attacking one another. The big news for the stock market this week will be the nonfarm payrolls report, scheduled for Thursday to get in before the holiday market closure on Friday.

Trump Threats and Tech Stocks Slide

Over the last few days, the stock market has seen severe selling pressure affect technology futures the most. These were hurt by worsening relations between the Trump administration and the Iranian government. When Iran launched attacks on the Strait of Hormuz this weekend, President Donald Trump responded by threatening to destroy the Islamic Republic of Iran.

It seemed as though the fighting would escalate, but U.S. officials said that they would stand down. There has been no word from the Iranian government yet as to whether they have accepted the new agreement. Meanwhile, oil prices started to climb early Monday but then slowed down as it appeared that the fighting would stop for now. Brent crude oil in only up 0.87% at the time of writing to $72.75 per barrel. The West Texas Intermediate price is up 1.24% and reached $70.10 per barrel.

Tech markets saw sharp decline on Friday, with the Nasdaq losing 4.5% and the tech-heavy S&P 500 falling by 2%. Major losses were reported from Alphabet (GOOG) and Nvidia (NVDA), with both dropping around 8% last week. These and other tech futures began to make back some of their lost ground on Monday morning. Nvidia rose by 0.75% in premarket trading, and Advanced Micro Devices (AMD) put in a good showing early on with gains of 1.04%.

Tech stocks have been bullish in recent weeks, and we anticipate them to make up lost ground this week. The nonfarm payrolls report is expected to show an increase of 114,000 jobs and for unemployment to hold around 4.3%, which should give the wider stock market support to move higher.

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Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.

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