Wall Street indices rose on Wednesday thanks to the appreciation of energy sector shares and the oil price growth, following the US President Donald Trump’s decision to withdraw the United States from the Iranian nuclear agreement. The broad benchmark S&P 500 added 0.91% to its value, while the energy sector advanced by more than 2%. Occidental Petroleum was one of the best-performing companies within the index after its shares rose by 5.4%. The technology sector also supported the performance of the S&P 500, rising by 1.4%. The representatives of the industrial, financial and raw materials sectors also moved into the green area.
The blue-chip index Dow Jones rose by 182.33 points, with Chevron and Exxon Mobil among the most profitable within the measure. The technological index Nasdaq Composite expanded by 1%.
Shares of Chevron and Exxon Mobil rose by more than 1.5% after US crude oil rose by 3% to 71.14 USD per barrel.
Walmart’s stock reported a decline of more than 4% over the news of the deal reached by the US hypermarket chain to take over the Indian e-commerce company Flipkart.
On Tuesday, the US President Donald Trump announced that he withdraws the US out of the nuclear agreement with Iran, restoring economic sanctions against the country. The decision is expected to increase the risk of conflict in the Middle East and to disturb the supply of oil.
The individual countries responded differently to the news of the US withdrawal from the deal. While some countries in the Middle East have approved the move, American allies in Europe have not done so. The Iranian President Hassan Rouhani said his country will continue to be involved in the nuclear deal.
On Wednesday, the 10-year US treasury bond yields returned to more than 3%, a level that recently brought the market to the brink. The yield on 2-year government bonds reached a record high for nearly a decade.