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US STOCKS-S&P 500 hits record high as concerns fade over U.S.-Iran escalation

Published 08/01/2020, 21:24
Updated 08/01/2020, 21:27
© Reuters.  US STOCKS-S&P 500 hits record high as concerns fade over U.S.-Iran escalation
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(For a live blog on the U.S. stock market, click LIVE/ or type

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* Iran fires rockets overnight at Iraqi bases housing U.S.

forces

* Trump comments fuel rally in risk assets

* Walgreens Boots slides on quarterly profit miss

* Indexes up: Dow 0.9%, S&P 0.9%, Nasdaq 1.0%

(Updates to late afternoon)

By Caroline Valetkevitch

NEW YORK, Jan 8 (Reuters) - U.S. stocks climbed on

Wednesday, with the S&P 500 and the Nasdaq hitting record highs,

after President Donald Trump's comments eased fears of an

all-out conflict in the Middle East.

Trump's comments at a White House briefing followed Iran's

missile strikes overnight on military bases housing U.S. troops

in Iraq.

The U.S. president said the strikes had not harmed any

Americans and that Tehran appeared to be standing down.

Comments earlier from Iran's foreign minister that the

country did not seek an escalation and a tweet from Trump that

"All is well!" also helped to calm investor jitters.

Stocks were edging higher before Trump's comments, but he

confirmed the view that the United States was "willing to make

peace with anyone who wants to," said Michael O'Rourke, chief

market strategist at JonesTrading in Stamford, Connecticut.

"His tone was very conciliatory, so I think everyone views

this as a de-escalation, and the S&P pushed to new all-time

highs."

Global markets have been rattled by concerns about rising

tensions in the Middle East after the U.S. killing of

influential Iranian Major General Qassem Soleimani on Jan. 3.

The S&P 500 energy index .SPNY was trading more than 1%

lower, while the rest of the S&P sectors were trading higher.

The Dow Jones Industrial Average .DJI rose 261.69 points,

or 0.92%, to 28,845.37, the S&P 500 .SPX gained 27.81 points,

or 0.86%, to 3,264.99 and the Nasdaq Composite .IXIC added

93.65 points, or 1.03%, to 9,162.23.

Among the day's decliners, Boeing BA.N fell 1.1% after a

737-800 jet made by the company and belonging to a Ukrainian

airline burst into flames shortly after takeoff from Tehran,

killing all 176 people aboard. Also, Walgreens Boots Alliance Inc WBA.O slid 5.7% as its

quarterly profit missed expectations. Shares in rival CVS Health

CVS.N fell 1.5%. Meanwhile, Lennar Corp LEN.N gained 1.8% after the No. 2

U.S. homebuilder beat quarterly profit estimates on lower home

prices and mortgage rates. Adding to the upbeat mood, the ADP National Employment

Report showed private payrolls jumped by 202,000 jobs last

month, much above the 160,000 rise expected by economists polled

by Reuters. Advancing issues outnumbered declining ones on the NYSE by a

1.77-to-1 ratio; on Nasdaq, a 1.82-to-1 ratio favored advancers.

The S&P 500 posted 58 new 52-week highs and no new lows; the

Nasdaq Composite recorded 106 new highs and nine new lows.

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