US stocks closed sharply higher today, Monday, with the Dow Jones index recording its highest record level upon closing, in light of the easing of the hostilities that broke out between the United States and Iran earlier this week and the shares of major companies in the technology sector rising after the recent wave of selling.
A source told Reuters that technical teams from Iran and the United States charged with working to implement the memorandum of understanding will meet in Doha in the coming days, after exchange of strikes that took place over the weekend threatened to undermine the fragile agreement.
On June 17, the United States and Iran signed a memorandum of understanding aimed at ending a war that lasted about four months. The memorandum included an agreement to stop hostilities and open the Strait of Hormuz.
“The hostilities between the United States and Iran early this week did not have a real negative impact on the market,” said Peter Cardillo, chief economist at Spartan Capital Securities in New York.
He added, “The market is looking ahead and preparing for the business results season, which is not far away.”
Most companies included in the Standard & Poor’s index are scheduled to begin announcing second-quarter results after mid-July.
Preliminary data showed the Standard & Poor’s 500 index rose by 85.24 points, or 1.16 percent, to close at 7,439.26 points, while the Nasdaq Composite index rose 514.90 points, or 2.04 percent, to 25,812.52. The Dow Jones Industrial Average rose 296.58 points, or 0.57 percent, to 52,172.69.
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