Dow, S&P 500, Nasdaq: Bessent fuels hope of Hormus opening – and drives S&P 500 to new record
US Finance Minister Bessent considers an end to the Hormus blockade as early as tomorrow to be possible. This boosts the buying mood on Wall Street even further and brings new highs.
Wall Street's stock gains continue on Tuesday, following Donald Trump's announcement of new talks with Iran, which helped push the Dow Jones to a new record high. US Financial Minister Scott Bessent revealed during a CNBC interview that an agreement could be reached on Tuesday or Wednesday regarding the Strait of Hormuz. "We are in talks with the Iranians, and I think there is a chance that we can reach an agreement today or tomorrow to open the strait and bring this conflict to a more normal state," said Bessent.
Investors are taking his word and buying into the market. The Dow Jones reached its second consecutive day of new highs, closing at 53,934 points with a 1.3 percent increase. The broader S&P 500 gained 0.5 percent, hitting a new all-time high of 7,644 points. The tech-heavy Nasdaq Composite rose 1 percent to 26,170 points. Bessent's comments have also helped drive oil prices lower, further boosting stock gains.
Brent crude oil fell to $81.60 per barrel, down more than two percent from the previous day. West Texas Intermediate (WTI) crude oil dropped over three percent to $77.70 per barrel. Trump's announcement of no new attacks on Iran had already led to a significant drop in oil prices on Monday. Higher energy prices lead to increased pressure on inflation, which typically results in lower expectations for central banks to raise interest rates, generally pushing bond yields down and allowing stock prices to rise.
Positive quarterly results aside, corporate earnings also influence market movements. Numerous US companies released their numbers on Tuesday: Palantir reported record quarterly earnings on Monday, surpassing the $1 billion mark for the first time. The stock gained significantly after-hours and is now 16 percent higher. Caterpillar impressed investors with its latest earnings, marking a 12.4 percent increase due to a record quarter with over $20 billion in revenue.
Hygiene products giant Kimberly-Clark defended against accusations that its products in China contained a toxic substance. Internal tests did not confirm the allegations, the company said in its earnings release. However, Kimberly-Clark lowered its outlook and lost about two percent on Wall Street.
Written by urgent.news from Handelsblatt's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
