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Overnight Markets: US stocks erase losses after Trump quits Iran deal

Energy shares gained as oil prices cut earlier declines on bets that the sanctions on Iran would disrupt global crude supplies.

 
Overnight Markets: US stocks erase losses after Trump quits Iran deal

Wall Street erased earlier losses to end little changed on Tuesday while energy stocks rallied after President Donald Trump declared he was withdrawing the US from the Iran nuclear deal signed three years ago.

The Dow Jones Industrial Average ended 0.01% higher at 24,360, while the S&P 500 ended down 0.03% to 2,672. The Nasdaq Composite added 0.02% to 7,267.

In a televised speech, Trump said the US would quit the international agreement with Iran designed to deny Tehran the ability to build nuclear weapons, and also reinstate sanctions on Iran.

The move is likely to raise the risk of conflict in the Middle East, upset America’s European allies and disrupt global oil supplies.

The S&P energy sector rose 0.78% after erasing the earlier losses, as oil prices cut earlier declines on bets that the sanctions would disrupt global crude supplies. Chevron and ConocoPhillips gained more than 1.0% and ExxonMobil advanced 0.5%.

The S&P industrials, financials and technology indexes rose, while utilities and telecom services were the deepest decliners.

In company news, Comcast fell 5.56% after Reuters reported the cable operator is preparing to make an all-cash offer for media assets that Twenty-First Century Fox has agreed to sell to Disney for $52 billion.

Boeing, which had announced contracts with Iranian companies, fell 0.6%. But General Electric, which also was pursuing business in Iran, rose 1.4%.

Citigroup surged 3.7% following news activist fund ValueAct Capital Management built a $1.2 billion stake in the bank.

After the bell, Disney edged up 0.5% after it reported its quarterly results that were powered by the hit superhero movie “Black Panther”.

In Asia, shares were listless on Wednesday in morning session following Trump's announcement that the US would pull out of the Iran nuclear deal.

Japan's Nikkei 225 declined 0.37%. South Korea's benchmark Kospi edged down by 0.14%. Hong Kong's Hang Seng Index hovered around the flat line, last inching higher by 0.01%. Mainland markets traded slightly lower. The Shanghai composite slipped 0.21%. Down Under, the S&P/ASX 200 tacked on 0.17%.

 

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