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US Stock Market Hits Record Highs as Strong Earnings and AI Demand Drive Rally; Oil Prices Surge Amid Iran Tensions
US Stock Market: The US stock market hit new highs on Wednesday amid concerns about the war with Iran. However, crude oil prices surpassed the $100 mark. Global markets saw declines in Europe, while Asia saw mixed trends. Japan's Nikkei 225 rose slightly, but Hong Kong's Hang Seng fell.
Wednesday saw a significant surge in the American stock market, with major indices closing at record levels. Thus, the S&P 500 index grew by almost 1%, reaching an all-time high. Meanwhile, the Dow Jones increased by 340 points, while the Nasdaq Composite index went up by 1.6% and set an all-time high. Good performance from blue-chip firms contributed to the surge.
Thus, GE Vernova saw its shares soar by about 13.7%. The reason for this is that the company reported greater-than-expected profits and huge orders of artificial intelligence data centers. The share price of Boston Scientific, Boeing, and Philip Morris International surged following strong quarter performance. Reports suggest the Trump administration is preparing to declassify marijuana, potentially reducing the tax burden on the industry. This led to a sharp surge in shares of Tilray Brands and Canopy Growth.
However, amid this enthusiasm, a major concern remained: oil prices. Internationally, Brent crude oil prices rose 3.5% to over $101 per barrel. This is largely due to the ongoing war with Iran, which has increased uncertainty about global oil supplies. Oil prices, which were around $70 per barrel before the war, have now surpassed $100. However, market volatility has eased slightly. Meanwhile, shares of some companies also fell. Best Buy shares fell nearly 4.6% after the company announced its CEO, Corie Barry, was stepping down.
