The S&P 500 (^GSPC +1.18%) rose 0.72% to 6,575.32, the Nasdaq Composite (^IXIC +2.07%) climbed 1.16% to 21,840.95, and the Dow Jones Industrial Average (^DJI +0.59%) added 0.48% to 46,565.74 as easing Iran-war fears and sliding oil prices buoyed markets.
Market movers
Semiconductor strength showed through with big gains for Micron Technology (MU +0.90%) and Intel (INTC +2.64%) today. Intel announced it will buy back its stake in one of its Irish chip plants.
American Airlines Group (AAL +0.28%) and Delta Air Lines (DAL +0.65%) both finished in the green as cautious confidence returned to travel stocks. Energy stocks, including Occidental Petroleum (OXY 1.80%) and Chevron (CVX 1.51%), saw sharp declines, but have still surged so far this year.
Nike (NKE +1.74%) tumbled over 15% after sharing disappointing sales forecasts in its Q3 earnings. Eli Lilly (LLY +1.53%) jumped after the Food and Drug Administration (FDA) approved its new obesity pill.
What this means for investors
Brent crude dipped briefly below $100 in intraday trading, finishing the day down almost 15% at $101. The drop in oil prices and rally in major U.S. indexes came amid growing optimism that the war in Iran might end soon. Gold and gold mining stocks also rose.
Despite today’s rally, the S&P 500 is down 4% since the start of the year. Energy prices will remain elevated even after the conflict ends, which could push up inflation and pressure stock prices. It is important to be prepared for further headline-driven volatility, maintain a diversified portfolio, and stay focused on long-term investment goals.
