(Bloomberg) -- U.S. stocks extended gains after President Donald Trump reinforced speculation that tensions with Iran won’t immediately escalate further.
The S&P 500 headed for its second advance in three days after Trump said Iran appears to be standing down. Treasuries were mixed after spiking overnight following Iranian airstrikes on American bases. Oil fell below $61 a barrel in New York, pulling down energy shares.
The Nasdaq indexes notched all-time intraday highs as tech led the advance in equities. In company news, Boeing (NYSE:BA) Co. slumped after one of its planes crashed in Iran. Walgreens Boots Alliance (NASDAQ:WBA) sank 6% after the drugstore giant’s profits slid, while Lennar Corp (NYSE:LEN). advanced as its earnings topped estimates.
“Even after this initial retaliation, the path of least resistance appears to be towards de-escalation from here on,” said Sandip Bhagat, Whittier Trust’s chief investment officer. “It may also be useful to bear in mind that previous Middle East strife has historically not left a lasting impact on risk assets.”
Markets settled into an uneasy calm, with investors betting that the lack of American casualties will give the president incentive to de-escalate the situation that flared with Friday’s killing of a ibtop Iranian general. The nervousness is denting optimism spurred by the improving outlook for global commerce, with a Sino-American trade deal expected to be signed next week.
If the calm holds, investors will likely increase their attention on the nonfarm jobs report due Friday. A gauge of private employment beat expectations Wednesday.
Read here for more on the ongoing market impact:
- Buy the Dip, Wait and See, Add Hedges: Investors on Iran Strike
- Global Market Reaction to Iran Rocket Attack in Four Charts
- Gold Surges Above $1,600 as Iran Attacks Spark Flight to Havens
- Algos Seize on Iran Headlines to Leave Some Traders With Losses
- President Trump said he would make a statement on Wednesday morning in wake of the Iran attack.
- Federal Reserve officials Richard Clarida, John Williams (NYSE:WMB), James Bullard and Charles Evans speak on Thursday.
- The U.S. monthly non-farm employment report is due Friday.
Stocks
- The S&P 500 Index advanced 0.3% as of 11:35 a.m. New York time.
- The Stoxx Europe 600 Index rose 0.1%.
- The MSCI Asia Pacific Index decreased 0.8%.
- The Bloomberg Dollar Spot Index added 0.1%.
- The British pound fell 0.2% to $1.3098.
- The euro dipped 0.3% to $1.1124.
- The Japanese yen declined 0.2% to 108.68 per dollar.
- The yield on 10-year Treasuries fell less than one basis point to 1.81%.
- The yield on two-year Treasuries fell less than one basis point to 1.54%.
- Britain’s 10-year yield was little changed at 0.793%.
- West Texas Intermediate crude decreased 1.9% to $61.50 a barrel.
- Gold fell 0.1% to $1,573.10 an ounce.