New York Stock Market Closes Higher Despite US-Iran Military Conflict Concerns... Dow Up 0.24%

[Asia Economy Reporter Jeong Hyunjin] Amid escalating tensions of armed conflict between the US and Iran, major indices on the US New York Stock Exchange closed higher on the 6th (local time).

At the New York Stock Exchange, the Dow Jones Industrial Average closed at 28,703.38, up 0.24% (68.50 points) from the previous session. The S&P 500 index rose 0.35% (11.43 points) to 3,246.28, and the Nasdaq closed up 0.56% (50.70 points) at 9,071.47.

Investors are focusing on the Middle East situation following the US airstrike on the 3rd that killed Qasem Soleimani, commander of Iran's Quds Force. Iran abruptly announced its withdrawal from the nuclear agreement (JCPOA - Joint Comprehensive Plan of Action) the day before. On the same day, Soleimani’s funeral was held in Tehran, the capital of Iran. Iran has declared it will retaliate against the US.

US President Donald Trump warned that if Iran retaliates against the US, it will strike back at 52 targets. Iraq is also experiencing urgent developments, with calls for US troop withdrawal centered around its parliament. In response, President Trump threatened to impose sanctions on Iraq as well.

Major indices had sharply declined on the 3rd due to rising tensions in the Middle East but reversed to an upward trend on this day. It is interpreted that investors are taking a wait-and-see stance as Iran has not yet carried out retaliation. Additionally, the rise in stock prices of major IT companies influenced the New York Stock Exchange’s gains. On this day, Facebook and Amazon shares rose more than 1%, while Netflix and Alphabet closed up 3.1% and 2.7%, respectively.

Crude oil prices, which had fallen sharply, reduced their decline, and the rise in gold prices, which had been maximized due to investment sentiment toward safe-haven assets, also eased somewhat. West Texas Intermediate (WTI) crude oil for February delivery closed up 0.35% at $63.27, while Brent crude for March delivery was trading at $68.44, down 0.23% as of 6:25 a.m. Korean time. International gold prices closed at $1,568.80 per ounce, up 1.1%.