Wall Street declines as investors wary on US-Iran tension, but chipmakers gain
08.01.2020 - Davydova Maria
Wall Street declines as investors wary on US-Iran tension, but chipmakers gain

Wall Street’s major indexes fell as investors become cautious of the escalating tension between the US and Iran. Following this, energy shares also dropped while oil prices recently climbed back up.

S&P 500 futures dropped 1% after news of Iranian missile attacks on Iraqi air base housing American troops was reported.

The drop in S&P 500 at the late hours of trading was an indication that Wall Street opens Wednesday with a loss.

On Tuesday, Chevron Corp (CVX.N) and Exxon Mobil Corp (XOM.N) dropped with oil prices, which in recent days had climbed amid the ongoing turmoil between US and Iran. This was after Iranian military commander Soleimani was killed in a US drone strike last week.

Meanwhile, chipmakers gained, helping the market restrict losses, especially in Nasdaq. Philadelphia Semiconductor index .SOX climbed 1.8% with Micron Technology Inc. climbing 8.8% after the upgraded version of brokerage Cowen & Co was launched.

When news of the killing of Soleimani surfaced, major indexes were wiped off record highs, sending equity investors in a tense state.

“We’re trying to digest the Middle East action” and other reports from the political front, portfolio manager Jack Janasiewicz of Natixis Investment Managers’ Multi-Asset Portfolio Solutions group said.

“It’s a little bit of a step back, take a breath, consolidate a little bit,” he said. “But we’re going to start to head into earnings, and that’s going to be the next catalyst for the market.”

The Dow Jones Industrial Average .DJI lost 0.42%, or 119.7 points, at 28,583.68; S&P 500 .SPX dropped 0.28%, or 9.1 points, at 3,237.18; and Nasdaq Composite .IXIC fell 0.03%, or 2.88 points, at 9,068.58.

Among those which gained include Boeing Co (BA.N) shares that rose 1.1%, Microchip Technology Inc. (MCHP.O) which climbed 6.7%, and Apache Corp (APA.N) which climbed 26.8%.

Risk disclaimer "Market Solutions Ltd – Suite 305 Griffith Corporate Centre P.O. Box 1510 Beachmont, Kingstown, St Vincent and the Grenadines is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0128 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of Market solutions Ltd and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from Umarkets.com or Market Solutions limited." Cookies notification: “We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Continue

Help with deposit?