Rally ahead of SpaceX debut: best day since April for S&P 500 and Nasdaq, oil down 5%
Photo: X / NYSE
The main indexes of the U.S. stock market on Thursday, June 11, rose sharply after several days of decline. The broad market index S&P 500, "technological" Nasdaq and Dow Jones showed the best growth since early April, writes MarketWatch. On Thursday, U.S. President Donald Trump canceled planned for the evening of June 11 new strikes on Iran, explaining it by progress in negotiations. After that, the price of Brent crude oil fell below $89 per barrel.
Details
- The S&P 500 broad market index rose 1.75% on June 11.
- The blue-chip index Dow Jones Industrial Average added 1.86% on Thursday.
- The Nasdaq Composite Technology Sector Index jumped 2.54%.
- The Russell 2000 index of small and mid-capitalization companies rose 3%.
- The CBOE Volatility Index (VIX), known as the "Wall Street Fear Index" fell 12% and was below 20 points, a psychological mark indicating, indicating high market volatility.
- Brent crude futures fell 4.7% to $88.7 a barrel, while WTI crude fell 3.9% to $86.2 a barrel.
- Gold rose 3.5% to $4215 an ounce, rebounding from its lowest price since the beginning of the year, to which it had fallen the previous day.
What influenced the market
The U.S. market perked up after U.S. President Donald Trump called off new strikes on Iran and announced progress in negotiations. Trump said the final terms of the future deal had been approved by all parties involved, including the US and Israel, which is also involved in the war with Iran. That said, the U.S. will maintain a naval blockade of Iran until the deal is finalized, Trump noted, adding that the time and place of the signing will be announced soon. West Texas Intermediate and Brent crude futures accelerated their declines after Trump's statement.
Earlier on Thursday, Trump said the US would attack Iran "very hard" in the evening. He also threatened that America would take control of Kharq Island, which hosts a crucial terminal for Iranian oil exports, and other oil infrastructure in the country.
The market was also influenced by the data of the U.S. Bureau of Labor Statistics on the producer price index, writes CNBC. In May, it rose by 1.1%. This is higher than the 0.7% expected by economists surveyed by Dow Jones. Core inflation, which excludes volatile food and energy prices, was 0.4%. Dow Jones had forecast 0.5%, CNBC wrote.
Additional impetus to the market was given by the return to growth of chipmakers' shares, which had been falling the previous two days. Shares of Micron Technology rose by 11.7%, Advanced Micro Devices - by 8%, Broadcom - by 3.6%. Intel shares rose 9.3% after Bank of America raised its recommendation on the stock to a "buy" advisory. The iShares Semiconductor ETF added 8.4% for the day.
Some traders believe that the weakness in the shares of chip makers in recent days was due to the fact that investors were selling securities to make room in portfolios for the IPO SpaceX, writes CNBC. Elon Musk's space company placed on the Nasdaq exchange about 555.6 million shares at $135 each, which allowed it to raise $75 billion. With these parameters, the entire business of the largest aerospace company in the world can be estimated at $1.77 trillion. IPO SpaceX became the largest in history, exceeding the result of Saudi Aramco more than twice. Trading in SpaceX shares is expected to begin on Friday, June 12, on the Nasdaq and Nasdaq Texas exchanges under the ticker SPCX.
What the analysts are saying
- "While the path to a settlement is likely to be bumpy, our baseline scenario is that diplomacy will ultimately prevail. This will allow investors to refocus on the economy's solid fundamentals and strong corporate earnings growth," Ulrike Hoffmann-Burchardi, investment director for the Americas and global head of equities at UBS Global Wealth Management, told Bloomberg.
- "The IPO boom is boosting investor confidence and will help support the entire stock market," Louis Navellier, a Wall Street veteran and founder and chief investment officer of Navellier & Associates, told Bloomberg. - "There's no question that we're still in the midst of a FOMO market where investors are afraid of missing out, so their flight into equities is expected to continue.
This article was AI-translated and verified by a human editor
