Perhaps it’s a sign that the market starts as it means to go on as the Street finishes it’s first trading day of the year on a buoyant note and a tech-led rally pushes NASDAQ past the 7,000 milestone.
At the end of last week, as 2017 drew to a close, low volume and quiet trading saw indexes lag. What mattered in trading on Tuesday was that optimism was back and driving momentum is the holy triumvirate that is the US economy is expanding; as are other global economies and that the upside of tax reform will translate into similar for corporate earnings.
For today, warnings of rocky times ahead for equities in 2018 have been set aside as the Dow advanced +0.42% and the majority of the blue-chip components were up. The S&P 500 added +0.53% and NASDAQ surged +1.20% on gains in tech issues as Advanced Micro Devices surged +6.81%. Nvidia rose +2.63%, Tesla was up +2.87%. Apple was up +1.79% along with Cisco Systems up +1.46%.
AT 4:59PM EST
- Dow 23,824.01 +0.42%
- S&P 500 2,695.81 +0.83%
- NASDAQ 7,006.90 +1.50%
- Russell 2000 1,550.01 +0.94%
- NYSE Composite 12,902.71 +0.73%
- Gold 1,319.1 +0.75%
- Oil WTI $60.38 -0.08%
- 10-Year Treasury 2.457 -0.47%
Iranian unrest fails to dent
Energy also saw gains after oil prices soared in earlier trading to 2 1/2 year highs before a slight pull back. Both bench crude and WTI opened the year above $60 per barrel, buoyed by large anti-government rallies in Iran and ongoing supply cuts led by OPEC and Russia as reported by Reuters.
In early trading WTI hit $60.74, the highest since June 2015. U.S. West Texas Intermediate (WTI) crude futures CLc1 fell around $60.38 a barrel at 4:49 PM EST (21:49 GMT). Energy companies Chevron rose +1.91% and ExxonMobil climbed +1.66%.
Anti-government protests which began on 28 December in Iran, OPEC's third largest crude producer and has resulted in 21 deaths failed to dent oil supply or production. Iran's supreme leader, Ayotollah Ali Khamenei, blamed unrest on enemies of the Islamic Republic.
Khamenei was quoted in the Guardian saying: “In the events of the past few days, the enemies of Iran are deploying every means at their disposal including money, arms and political and intelligence support to coordinate making troubles for the Islamic establishment.”