The Dow on May 9 went up for the fifth consecutive day and the wider stock market zoomed up due to positives in technology, energy, and financials stocks. The S&P 500 went up y 25.87 points to touch 2,697.79. This is a one percent gain with about nine of 11 principal sectors finishing much higher. The Nasdaq Composite Index added one percent or 73 points to reach 7,349.91. The DJIA or Dow Jones Industrial Average went up by 0.8 percent or 182.33 percent to touch 24,542.54. Among the 30 blue chip companies, 23 ended up in positive territory. DowDuPont Inc, up by 2.8 percent and Walmart Inc. with -3.13 percent led the losses.
President Donald Trump's decision to extract the United States out of Iran nuclear deal on May 8 helped the energy stocks to move north. The resumption of sanctions against the Asian oil producing country pushed investors to bet on much higher prices in futures commodity trading. Energy shares went up by two percent. This makes it the star performer among all S&P 500 sectors. The gains were wide, with technology, financials, industrial, and material sectors each going up by more than one percent. The only down pushers were utilities and telecoms, with negative 0.8 percent and 1.1 percent respectively.
The US listed energy companies were helped by an upside in the oil prices. There was a three percent increase in West Texas intermediate to touch at $71/14 per barrel. If Trump has its way, the US will impose punitive sanctions on Iran. This will curb the oil exports of the country. The worldwide oil supply will be constricted.
Data from Energy Information Administration also affected the oil markets. The data revealed that crude oil stockpiles dipped more than anticipated during the first week of May. Raphael Bostic, the Atlanta Fed President, opined that stimulus to any investment spends from recent GOP tax cut package could be dampened by uncertainty concerned US trade policy changes. Bostic is a voting member of Federal Open Market Committee, an organization capable of setting rates.
Ian Winer of Wedbrush Securities said that a number of investors have pared their stocks exposure before Trump announced his Iran policies. The markets did not sell as they believed and thus they re-invested their money. The present rally is a kind of relief rally which pushed S&P 500 to its recent range's high end,