Stock market don show strong face as investors dey hope say Iran and US fit reach peace deal. Both the Dow Jones Industrial Average and S&P 500 hit new all-time highs for intraday trading, as optimism dey spread for market.
President Donald Trump tok say talks with Iran dey go smoothly, and e say e go be great deal for everybody or no deal at all. Dis statement make investors happy, even as US and Iran exchange fire for Strait of Hormuz. US Central Command say dem conduct self-defense strikes for southern Iran, targeting vessels wey dey try lay mines and missile launch locations.
Oil price drop sharply as peace prospects dey brighten. West Texas Intermediate crude fall 2% to $93 per barrel, while Brent crude trade 4% higher for $100 per barrel. Lower oil price help fuel last week rally, but energy cost still high and dey affect expectations for Federal Reserve rate cut.
Shares of Micron Technology jump 15% as analysts dey bullish. UBS say dem see more than 100% upside for the stock, because of long-term agreements. Fellow memory chip stocks Seagate Technology and Western Digital also gain, rising 3% and 8% respectively. The Roundhill Memory ETF (DRAM) add 12% and reach new 52-week high.
Adam Crisafulli of Vital Knowledge tok say market dey wonder how much of the peace deal already dey priced in. Adam Parker of Trivariate Research say fundamentals dey drive the rally, with earnings projected to grow 23% this year and 16% next year. E say despite increasing earnings projections, the price-to-forward earnings don modestly contract.
British energy major BP fall sharply after board remove Chairman Albert Manifold for governance issues. Amanda Blanc, senior independent director, say board don be surprised and disappointed to learn of governance oversight and conduct wey dem deem unacceptable.
Ferrari fall 3% for premarket after dem unveil first-ever EV, the Luce, priced around $640,000. Michael Field of Morningstar say many fans dey disappointed as dem believe EV dilute the supercar brand.
For Asia, the Nikkei 225 breach 65,000 for first time, while Hong Kong Hang Seng stay flat. Bank of Japan Deputy Governor Ryozo Himino say timing of rate hike still dey consider, as central bank monitor Middle East developments.
Ed Yardeni of Yardeni Research say investors don move from FOMO to FEMO, meaning fabulous earnings momentum. E say the rally dey driven by forward earnings, not hype, so market no dey for bubble territory.
