U.S. stocks closed mixed as uncertainty continued to weigh on the market over the development of the conflict in the Middle East and its potential impact on inflation, oil prices, and the future direction of U.S. interest rates.
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Investors Took Profits After Previous Market Gains
The Dow Jones Industrial Average, which tracks 30 leading U.S. companies, gained 0.32% and closed at 49,686.12 points. The broader S&P 500 index slipped 0.07% to 7,403.05 points, while the tech-heavy Nasdaq Composite fell 0.51% to 26,090.73 points.
According to analysts, some investors are now taking profits after the previous rise in the stock market. “Concerns emerged about the market’s growth over such a short period of time, leading to some profit-taking,” Reuters quoted Tim Ghriskey, analyst at Ingalls & Snyder, as saying.
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Markets Are Watching the Conflict, the Dollar, and the Fed’s Next Moves
U.S. President Donald Trump announced on his social media platform Truth Social that, at the request of Qatar, Saudi Arabia, and the United Arab Emirates, he had postponed new strikes against Iran that had been planned for Tuesday. He added that “serious negotiations” were now taking place, but provided no further details. At the same time, he warned that if he was not satisfied with the final agreement, the United States would launch a large-scale attack against Iran.
On the foreign exchange market, the U.S. dollar weakened slightly against the euro and several other major currencies. Shortly after 10:00 p.m. CEST, the single European currency was up around 0.2% and traded near 1.1650 USD. Financial markets are also focused on the Federal Reserve’s monetary policy. Last week, the U.S. Senate confirmed Kevin Warsh as the new head of the central bank, while expectations for interest rate cuts have recently been complicated by rising inflation linked to higher oil prices.
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Source: ČTK
