US stock markets hit record highs today as easing tensions in the Middle East soothed traders’ nerves after a week of drama.
The Dow Jones and the S&P 500 both rose just over 0.5 per cent, to 28,900.74 and 3,270.63 respectively.
The Nasdaq was the biggest winner in early trading, up over 0.8 per cent to 9,206.04 as all three opened at record highs.
The new record prompted a tweet from US President Donald Trump, who tweeted: “STOCK MARKET AT ALL-TIME HIGH! HOW ARE YOUR 409K’S DOING? 70%, 80%, 90% up? Only 50% up! What are you doing wrong?”
Tech giants Facebook, Apple, Amazon, Alphabet and Microsoft gained the most from the easing geopolitical situation, climbing between 0.7 and 1.5 per cent.
China’s commerce ministry also helped sentiment by announcing that vice premier Liu He would sign the long-awaited phase one trade deal with the US in Washington next week.
Traders will hope that this will mean an end to the prolonged tariff war that the two sides have been fighting.
In a statement last night, Trump said that Iran seemed to be “backing down” after the Islamic Republic targeted coalition bases in Iraq with ballistic missiles in the early hours of Wednesday.
Markets have been suffering since a US airstrike killed Iranian general Qassem Soleimani last Friday, which sent the price of oil and gold soaring.
These have now eased back, as fears of a squeeze on global supplies of oil grew less severe.
Strategists at Eastspring Investments told clients that if “the nascent recovery in the global economy continue, further upside in global markets is still possible.”