Stocks hit records on tech earnings, oil slide from prospect of Iran deal
· CNA · JoinRead a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST
May 6 : Stocks surged to fresh records and oil prices dropped on Wednesday after a report that the United States and Iran are closing in on an agreement to end their war, while momentum in AI-driven trades accelerated.
Brent crude, the global benchmark, initially plunged to just below $100 per barrel, its lowest in two weeks, given the importance of oil passing through the Strait of Hormuz. Brent settled 7.83 per cent lower at $101.27 a barrel. U.S. West Texas Intermediate crude fell about 7 per cent, to $95.08.
On Wall Street, a humming U.S. corporate profit engine continued to rally U.S. stocks to record levels. The Dow Jones Industrial Average added 1.24 per cent, while the S&P 500 rose 1.46 per cent, and the Nasdaq Composite jumped 2 per cent, both fresh highs.
Europe's STOXX 600 index extended its gains and was last up 2.2 per cent after climbing 0.7 per cent a day earlier. MSCI's All-Country World Index climbed 1.64 per cent to a fresh record.
CNA Games
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
Show More
Show Less
"A pretty punchy move on the back of those stories, almost as if the market has shifted into 'buy everything' mode," said Michael Brown, senior research strategist at Pepperstone.
"It's difficult to say how close to a deal we might be," Brown said. "Market participants, though, aren't going to wait for confirmation of good news and are essentially now front-running a positive outcome."
The U.S. dollar, which has been a safe haven during the Iran war, dropped 0.3 per cent against its major peers, reflecting investor hopes for a possible deal.
The yen rose by as much as 1.8 per cent against the dollar in a swift move, triggering speculation of another round of intervention.
Meanwhile, yields on government bonds fell along with oil prices as traders dialed down their bets on central bank rate hikes. The 10-year U.S. Treasury yield fell 6.4 basis points to 4.352 per cent.
Although stocks have rallied sharply, volatility in energy and bond markets could weigh on global growth. Oil prices are around 35 per cent higher than they were when the conflict began in late February, while 10-year Treasury yields are around 40 bps higher.
AI RALLY BOOSTS GLOBAL STOCKS
In the United States, shares in chipmaker Advanced Micro Devices jumped around 18.6 per cent as the company forecast second-quarter revenue above Wall Street expectations, helping drive AI enthusiasm across markets.
Rival Intel also rose to a record high, while chip designer Arm Holdings and chipmaker Qualcomm similarly surged.
The broadest index of Asia-Pacific shares outside Japan jumped 3.2 per cent. Samsung Electronics surged 14 per cent, topping a $1 trillion market value and overtaking Berkshire Hathaway.
Newsletter
Week in Review
Subscribe to our Chief Editor’s Week in Review
Our chief editor shares analysis and picks of the week's biggest news every Saturday.
Sign up for our newsletters
Get our pick of top stories and thought-provoking articles in your inbox
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app