On Wednesday, US stocks approached a new record high after continuing their strong rise over the past two weeks, supported by growing hopes that the global economy will avoid the worst repercussions of the US-Iranian war.

The Associated Press reported that the Standard & Poor’s 500 index achieved an increase of 0.4%, becoming on the verge of surpassing its record peak recorded in January. It is noteworthy that the index had fallen by about 10% from its highest level in late March, but it has almost recovered these losses with a similar increase since then.

This rise is due to optimism about the decline of tension and the full return of the flow of oil through the Strait of Hormuz, in addition to continued expectations for the extension of the ceasefire between the United States and Iran and the resumption of negotiations before the agreement ends next week. However, these gains are still vulnerable to being reversed quickly if these expectations fade, as has happened previously during this war.

Oil prices witnessed fluctuation on Wednesday, reflecting continued caution in the markets, while the movement of global stock indices remained limited after the large gains that were achieved recently. Brent crude rose 0.9% to $95.64 a barrel, well above its pre-war level of nearly $70, but still below its peak of $119.

At 12:30 PM EST, the Dow Jones Industrial Average was down 215 points, or 0.4%, while the Nasdaq Composite Index was up 1.1%.

If the US-Iranian talks are successful, the war could be considered merely a temporary shock to the global economy, and not the beginning of a long period of high oil prices and inflation, which could refocus investors on the most important factor in the markets, which is corporate profits.

In this context, Bank of America shares rose by 1.3% after announcing profits amounting to $8.6 billion in the first three months of the year, an increase of 17% on an annual basis, exceeding expectations. Morgan Stanley shares also rose by 4.2% after achieving quarterly results that exceeded analysts’ estimates.

Also, some companies that were previously affected by artificial intelligence fears recovered part of their losses. “Service Now” shares rose by 6.3%, “Oracle” by 4.2%, and “Ares Management” by 6.3%, although they are still down by rates ranging between 12% and 40% since the beginning of the year.

Mason Mendez, an investment strategist at the Wells Fargo Investment Institute, noted that “today we see promising investment opportunities” in sectors such as technology.

“Allbirds” shares recorded a significant increase of more than 700%, reaching more than $20, after the company announced a change in its strategy and its entry into the field of computing infrastructure for artificial intelligence, with its name changing to “NewBird AI.” The name “Allbirds” will remain associated with its shoe brand, which the company agreed to sell to the “American Exchange Group.”

Nike’s shares also rose by 3.3% after CEO Elliot Hill and Apple board member and CEO Tim Cook announced a joint purchase of about 48,000 shares of the company’s stock, worth approximately one million dollars. However, Nike shares are still down about 29% since the beginning of the year.

On the other hand, the Dutch “ASML” stock fell by 5.4% on Wall Street, after its revenue expectations fell on average below analysts’ estimates, although the stock is still up by about 36% since the beginning of the year.

Globally, the performance of stocks in Europe was mixed after achieving limited gains in Asia, while the yield on US 10-year Treasury bonds rose to 4.28% compared to 4.26% at the end of Tuesday’s session. (Al Ain)