Stocks Rise on Strong Services Data Despite Middle East Tensions – US Market Wrap
US equities climbed after fresh economic data highlighted resilience in the services sector and easing price pressures, offsetting concerns about escalating conflict in the Middle East. Bitcoin surged above $73,000, while oil traded in a volatile range.
Stocks advanced after reports showed the US services industry expanding at its fastest pace since mid-2022, with a related price gauge dropping to its lowest level in nearly a year. The data boosted confidence in the economic outlook. A rally in major technology stocks also supported the market, pushing the Nasdaq 100 up 1.5%. Nvidia shares were in focus after comments indicating the company does not expect its investments in OpenAI to approach $100 billion. Crude oil settled near $75 after sharp intraday swings.
Geopolitical developments continued to dominate headlines. President Donald Trump expressed confidence in the ongoing military campaign against Iran, even as the timeline for operations remained uncertain. Iran launched strikes toward Israel and Gulf states while Israeli and US forces carried out additional attacks inside Iran. US forces also sank an Iranian warship in international waters.
Iran denied reports suggesting it had reached out to Washington to negotiate an end to the conflict.
Despite the heightened geopolitical backdrop, strong economic momentum and corporate earnings have helped support risk assets. Markets have so far absorbed the tensions without a major sustained pullback.
The S&P 500 rose 0.8%. The dollar slipped 0.3%, while the yield on 10-year Treasuries increased three basis points to 4.09%.
