US stocks: S&P 500 ends nearly flat as US-Iran talks help stocks pare losses
S&P 500 ended almost flat as Microsoft declined, while Meta Platforms recorded gains amid ongoing market fluctuations. Oil prices surged following geopolitical tensions and a missile attack on Saudi Arabia, raising supply concerns. Treasury yields also increased, with the 30-year bond yield reaching its highest level since 2004. Traders anticipate a significant chance of another Federal Reserve…
The S&P 500 concluded nearly unchanged on Thursday, with the tech giant Microsoft's decline offsetting Meta Platforms' gains, according to Reuters. The uncertainty surrounding the Middle East conflict led to rising oil prices and Treasury yields. The S&P 500 and Nasdaq recovered from their lows after reports of US and Iranian negotiators discussing a phased resolution to the war, which would see Tehran reopen the Strait of Hormuz and Washington lifting its economic blockade.
However, US and Iranian leaders exchanged harsh words at the UN General Assembly. Brent crude surged by nearly 4% to $107 a barrel following a Houthi missile strike on Saudi Arabia, rekindling supply disruption concerns. Major AI stocks had mixed performances, with Microsoft and Broadcom falling around 1%, while Advanced Micro Devices rose by 1%.
Meta Platforms experienced a 3.4% increase, following the unveiling of a handheld device for its AI assistant. Oracle declined by 4.1% after reportedly issuing a "force majeure" notice due to a New Mexico data center issue. The S&P 500 closed 0.03% lower at 7,703.83 points, the Nasdaq Composite gained 0.01% to 26,937.79, while the Dow Jones Industrial Average dropped 0.32% to 51,349.18.
The S&P 500 has been trading near a low valuation of 19 times expected earnings this week, the lowest since 2023. President Donald Trump met with Chinese President Xi Jinping in a summit with limited impact on AI, trade, Taiwan, and the Middle East war. Wednesday's data indicating robust business activity reinforced expectations of another Federal Reserve interest rate hike before the year's end, with a 70% chance according to the CME FedWatch Tool.
New York Fed President John Williams suggested the central bank might raise rates again before the year concludes. Additionally, MGM Resorts experienced an 11% drop following the withdrawal of Barry Diller's People Inc.'s proposal to acquire the casino operator.
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