Wall Street’s three main indices closed slightly higher on Thursday after a volatile session as oil prices reversed earlier gains and investors monitored developments in US-Iran peace talks.
After trading lower through the morning, stocks clawed back gains in afternoon trading while oil prices shifted from a rally to a decline.
The Dow Jones Industrial Average rose 276.31 points, or 0.55 per cent, to 50,285.66, marking a record closing high.
The S&P 500 gained 12.75 points, or 0.17 per cent, to 7,445.72, while the Nasdaq Composite rose 22.74 points, or 0.09 per cent, to 26,293.10.
Iran negotiations remain market focus
US Secretary of State Marco Rubio said there had been “some good signs” in talks with Iran, but added a diplomatic agreement would be difficult if Iran introduced a tolling system in the Strait of Hormuz.
A senior Iranian source told Reuters that no agreement had been reached with the US, although gaps had narrowed.
Iran’s uranium enrichment program and control over the Strait of Hormuz remained key sticking points.
Marc Dizard, chief investment officer at Huntington Wealth Management, said market sentiment remained highly sensitive to headlines around the conflict.
“The silver lining is that from a market perspective, the fragile ceasefire is still holding,” he said.
“Oil and market sentiment is very sensitive to every headline.”
Earnings and economic data in the spotlight
Investors also reacted to a fresh batch of corporate earnings and economic data.
Consumer staples led declines across the S&P 500 sectors, falling 1.6 per cent.
Economic data released during the session showed jobless claims fell last week, pointing to continued resilience in the labour market.
US manufacturing activity also rose to a four-year high in May as businesses built inventories to guard against shortages and rising prices linked to the Iran war.
