The Dow Jones Industrial Average hit an intraday record high on Friday, its first since the U.S.-Iran war began, as AI-driven trade and market optimism over negotiations to end the war lifted risk appetite.
The blue-chip index .DJI rose 0.73 per cent to 50,651 points, surpassing its previous record high of 50,512.79 from Feb. 10 after crossing 50,000 points earlier this week. The index had confirmed a correction in March, closing 10 per cent below record highs, as worries about the global economic impact of the war in Iran fueled a broader Wall Street sell-off.
Artificial intelligence-driven moves and a Middle East ceasefire aided market recovery from March lows, with both the S&P 500 and the Nasdaq hitting record highs in mid-April. The industrials-heavy Dow lagged behind, however, as technology shares drove markets.
On the Dow, tech names Cisco, Amazon and Nvidia have outperformed over the quarter. The chip giant’s sales outlook topped estimates this week.
Laggards over the same time period include Chevron, McDonalds and Nike.
Robust first-quarter earnings have outweighed geopolitical uncertainties with analysts’ estimates for the next 12-month U.S. earnings rising by over 10% since the start of the year, according to LSEG Datastream.
(Reporting by Twesha Dikshit and Utkarsh Tushar Hathi in Bengaluru; Editing by Devika Syamnath)
