US stocks down on Iran war concerns as oil prices surge

NEW YORK: Wall Street stocks opened lower on Monday as optimism over a possible peace deal in the Middle East dissipated, with the United States and Iran trading strikes and oil prices surging. The Dow Jones Industrial Average fell 0.4 percent to 50,805.68 points shortly after trading started, while the broad-based S&P 500 Index was down 0.1 percent at 7,569.80. The tech-focused Nasdaq Composite Index edged lower by 0.1 percent to 26,960.19. Oil surged on Monday, in line with a recent trend seen when prospects for peace in the Iran war have appeared clouded. Art Hogan, from B. Riley Wealth Management, told AFP the recent boom in equities – despite a clouded economic outlook due to the war – stems from several factors, including heavy investment in AI technology. “Even though the AI revolution is moving and it’s being four years old, we still underestimate the revenue and earnings growth that it’s driving,” he said. Markets have also backed away from recently rising US bond yields, stabilizing some investors’ outlook, he said.

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