Micron joins US$1t club as Wall Street rallies through Iran war nerves

NEW YORK, May 27 — Wall Street stocks mostly rose yesterday, lifting the S&P 500 and Nasdaq to fresh records on hopes for a Middle East peace deal.

The gains came despite a jump in Brent oil prices after US military strikes on Iran prompted worries about a military rebuttal from Tehran.

“Risk-on winds are dominating Wall Street today as progress on the US-Iran negotiations raises optimism concerning a sustained retreat in crude oil and yields,” said Jose Torres of Interactive Brokers.

“A potential peace deal, which is offsetting the adverse impact of some overnight tensions between both nation’s militaries, would materially strengthen business fundamentals and the economic outlook.”

While the Dow edged down from last week’s records, both the S&P 500 and Nasdaq finished at new all-time highs.

One big mover was chip company Micron, which piled on nearly 20 per cent following a favourable analyst report from UBS that extolled the company’s connection to the artificial intelligence boom. Micron’s surge yesterday made it the latest tech giant worth more than US$1 trillion (RM4 trillion).

While Wall Street was closed on Monday, stock markets had rallied elsewhere and crude futures dropped below US$100 a barrel after reports that an Iran deal might come within days.

That was before US forces said they had attacked missile sites in southern Iran and boats trying to lay mines.

Iranian state media reported overnight blasts in the southern port city of Bandar Abbas, near the Strait of Hormuz, and the country’s Revolutionary Guards said its forces had downed a US drone entering its airspace and had fired at an F-35 fighter jet.

“The US terrorist army, continuing its illegal and unjustified actions since the ceasefire … has, in the past 48 hours, committed a gross violation of the ceasefire in the Hormozgan region,” the Iranian foreign ministry said.

Despite the strikes, Secretary of State Marco Rubio said yesterday that a deal remained within reach.

But he remained firm on the Strait of Hormuz, the key oil and gas shipping route which Iran is seeking to control

Brent North Sea crude, the international benchmark, jumped almost 4.5 per cent yesterday to edge back above US$100 a barrel before pulling back a bit.

In Europe, Frankfurt and Paris closed off around 1 per cent with London ending just 0.2 per cent ahead as traders returned after a long holiday weekend in Britain.

British oil giant BP topped the losers’ chart, off more than 4 per cent after it unexpectedly removed Albert Manifold as chairman only months into his tenure, citing “serious concerns” about governance standards, oversight and conduct at the company.

AJ Bell investment director Russ Mould focused on the Iran situation as he noted that “continued doubts about the potential for a deal and an overnight pre-emptive US strike on Iran mean any euphoria is being kept in check.”

In Asia, Seoul’s stock market hit a new record high above 8,000 points as chipmakers, carmakers and shipbuilders continued to outperform.

In Europe, investors were quick to express disappointment at Ferrari’s unveiling of its first electric model, with shares in the Italian luxury carmaker skidding 6 per cent. — AFP