Iran threatened strikes against the bigtech of the US. How did stocks react?
Iran has threatened strikes including against the companies of the "Magnificent Seven" / Photo: bluestork / Shutterstock.com
Shares of U.S. tech giants came under pressure on March 31 after reports of threats from Iran's Islamic Revolutionary Guard Corps, MarketWatch writes. Iranian media reported that the IRGC warned 18 U.S. companies, including Nvidia, Microsoft, Apple, Google, Intel and Boeing, that it would consider their facilities legitimate targets in response to the U.S. and Israeli operation. Following the announcement, stocks pulled back from intraday highs, but recovered losses almost immediately.
At the time of publication of this text, the technology index Nasdaq Composite rose by almost 2.2%, although it remained in the correction zone. Nvidia rose by 5%, Microsoft securities rose by 1.7%, Apple - by 1.5%, Alphabet - by 3.1%, Intel - by almost 4%.
The Roundhill Magnificent Seven Exchange Traded Fund ETF, which tracks Magnificent Seven stocks, added 2.7% and is on track for its best day since November, MarketWatchreports.
The acceleration of growth in the US stock market coincided with new statements by President Donald Trump. In an interview with the New York Post, he said he believes the war with Iran is probably nearing completion. According to the American leader, traffic in the Strait of Hormuz, through which a fifth of the world's marine oil supplies and a significant volume of LNG passes, will resume after the end of the operation.
"I think it (the strait - Oninvest) will open automatically. But my position is as follows: we have already virtually destroyed the country. They have no strength left, and let the countries that use the strait go and open it themselves... because I think those who control the oil will be very interested in opening it," Trump said.
"Any steps toward ending the war are viewed positively by the stock market - that's why we're seeing this relief rally," explains Eric Diton, president of The Wealth Alliance. - But it's too early to say the worst is over. If the oil problem is not solved, it will continue to exert pressure.
The price of oil rose sharply on Tuesday, with the Brent Mark trading above the $119 per barrel mark.
This article was AI-translated and verified by a human editor
