U.S. stock markets continue to rise, with major indices hitting new highs. Investor optimism is fueled by hopes that the geopolitical situation will calm down, yet market developments remain uncertain.
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Indices at record highs despite volatility
The Dow Jones Industrial Average rose 0.24% to 48,578.72 points, while the S&P 500 gained 0.26% to close at 7,041.28 points. The tech-heavy Nasdaq rose 0.36% to 24,102.70 points, confirming its ongoing upward trend.
However, trading was volatile throughout the day. Investors reacted to the announcement of a ten-day ceasefire between Israel and Lebanon, which brought hope for a broader peace agreement and helped markets recover from previous losses caused by the conflict.
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Geopolitics and corporate earnings keep markets on edge
According to Robert Phipps of Per Stirling Capital Management, the war remains a key factor influencing investor sentiment. He notes that the current rally to record highs is rather exceptional and markets may test lower levels in the near future, especially without clear signals of lasting peace.
In addition to geopolitics, corporate earnings and macroeconomic data are also playing a role. PepsiCo shares rose on strong earnings, while Abbott fell due to a weaker outlook. Meanwhile, the U.S. dollar strengthened by 0.2% to 98.2 points as investors once again seek safer assets in an uncertain environment.
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Source: ÄŒTK
