US stocks hovered close to their all-time highs in mid-session trade on Wednesday, taking a breather after two strong sessions driven by easing geopolitical tensions in the Middle East and a sharp pullback in oil prices.
At 9:35 a.m. ET, the S&P 500 was up 0.2 percent, trading just 0.7 percent below its record intraday high of 6,147.43. The Nasdaq Composite gained 0.6 percent, supported by strength in technology names, while the Dow Jones Industrial Average was largely flat.
Crude oil prices, which have been at the centre of this week’s market action, edged higher after a two-day rout. Benchmark WTI crude rose 0.7 percent to $64.81 per barrel but remains well below levels seen before the Israel-Iran conflict flared earlier this month. The easing of security concerns around the Strait of Hormuz —following a US-brokered ceasefire — helped restore tanker movement through the vital energy chokepoint, according to vessel tracking data.
Investors are now watching for cues from Federal Reserve Chair Jerome Powell, who is testifying before the Senate Banking Committee. While Powell’s remarks so far have not shifted market expectations on rate cuts, short-term US Treasury yields remain subdued, with the two-year yield hovering at its lowest since early May.
Meanwhile, global investors remain mindful of underlying risks — from fragile geopolitics to questions about the pace of economic recovery. Some signs of fatigue have crept into the recent equity rebound, especially as the S&P 500 flirts with record levels.
In Europe, major indices declined across the board. The pan-European Stoxx 600 slipped 0.7 percent, while the UK’s FTSE 100 dropped 0.5 percent. France’s CAC 40 and Germany’s DAX fell 0.8 percent and 0.6 percent, respectively. However, defence stocks outperformed sharply, buoyed by a NATO-led commitment to double defence spending targets by 2035. Shares of companies like Babcock International, Rheinmetall, Leonardo and Thales surged between 2 percent and 10 percent.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
