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Overnight Markets: Higher oil prices lift Wall Street after US quits Iran deal

Energy and tech stocks gained, while telecoms were the biggest loser, falling more than 1%.

Overnight Markets: Higher oil prices lift Wall Street after US quits Iran deal

Energy and tech stocks lift Wall Street on Wednesday following US President Donald Trump’s decision the previous day to quit a nuclear agreement with Iran.

The Dow Jones Industrial Average added 0.75% to end at 24,543 points, while the S&P 500 gained 0.97% to 2,698. The Nasdaq Composite rose 1% to finish the session at 7,340.

Rising oil prices pushed the energy sector to 2% higher, putting it at the top of the benchmark index, while the tech sector rose 1.4%. Telecoms were the biggest loser, falling more than 1%, while consumer non-cyclicals and utilities also ended in negative territory.

Crude hit its highest level in 3-1/2 years as investors bet the US withdrawal from the nuclear deal with Iran would increase risks of conflict in the Middle East and curtail global oil supplies.

 “The rise in oil is helping energy sector, which is expected to be a pretty big growth sector”, said Shawn Cruz, senior trading specialist at TD Ameritrade in Chicago.

In stock trading, TripAdvisor’s 22% post-earnings jump put it at the head of the pack on the S&P 500, while Coty dropped 8% after an underwhelming quarterly report.

Google-owner Alphabet Inc rose 2.87%, providing more lift than any other stock to the S&P 500. It was followed by Facebook Inc, which rose 2.09%.

Walmart Inc fell 3.13% after the retailer took a majority stake in Indian e-commerce firm Flipkart for about $16 billion.

Walt Disney dipped 1.79% despite reporting a quarterly profit above Wall Street estimates.

Electronic Arts Inc. climbed 5.8%, boosted by positive analyst commentary following its quarterly results.

In Asia, share markets notched moderate gains on Thursday in morning session, tracking Wall Street's advance as oil prices traded higher after touching multi-year highs overnight.

The Nikkei 225 edged higher by 0.42% in early trade. Moderate gains were similarly seen in South Korea as the benchmark Kospi rose 0.55%.

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