On Thursday, US stock markets failed to show a clear trend. The Dow Jones closed down 0.3% at 51,350 points. However, the technology-focused Nasdaq index, tracking the 100 most important stocks, edged up slightly by a mere 0.03% to reach 30,479 points. The broader S&P 500 also registered a slight decline of 0.03%, finishing at 7,704 points.
A significant factor contributing to market anxiety was the continued surge in oil prices. Brent crude oil, sourced from the North Sea, cost $107.60 per barrel around 10 PM German time on Thursday, representing a substantial increase of 4.3% compared to the previous day’s close.
Many investors have become discouraged by the hope of a short-term agreement between the United States and Iran regarding the full reopening of the Strait of Hormuz. Consequently, markets are now projecting rising energy costs and a corresponding increase in inflation. This trend is also impacting the bond market, pushing the yield on 30-year US government bonds to its highest level in 22 years.
In currency markets, the Euro was slightly weaker on Thursday evening, trading at $1.1377. Conversely, the dollar was trading for 0.8790 Euros. Gold prices softened, with a fine ounce fetching $4,272 by the evening (-0.4%). This equates to a price of 120.73 Euros per gram.
