Global stocks diverge, oil rises as fresh US-Iran clashes hit peace hopes
While European bourses retreated, the S&P 500 and Nasdaq indices both pushed to fresh records on solid US jobs numbers. The Dow ended flat.
“No negative news sticks to this bull market, and it just keeps working its way higher,” said CFRA Research’s Sam Stovall.
A US fighter jet disabled two Iranian-flagged tankers to enforce a port blockade on Friday, prompting retaliatory attacks from Iran. The latest incident came after another flare-up overnight in the strait.
Meanwhile, US data showed the economy added 115,000 jobs in April, more than double the forecast.
But US consumer confidence was at an all-time low according to a University of Michigan survey, with Americans weighed down by concerns about high prices and the fallout of the US-Israel war on Iran.
Stovall cited both the consumer confidence figure and the brittle conditions in the Middle East as headwinds the market has shrugged, but added, “I would not be surprised if we do see some digestion of recent gains take place in the near-term.”
