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U.S. stocks close higher despite U.S.-Iran conflict 2025/6/24 source: Print

NEW YORK, June 23 (Xinhua) -- U.S. stocks ended higher on Monday, as investors reacted cautiously to escalating tensions in the Middle East following U.S. airstrikes on three Iranian nuclear sites over the weekend.

The Dow Jones Industrial Average rose 374.96 points, or 0.89 percent, to 42,581.78. The S&P 500 added 57.33 points, or 0.96 percent, to 6,025.17. The Nasdaq Composite Index increased by 183.57 points, or 0.94 percent, to 19,630.98.

Ten of the 11 primary S&P 500 sectors ended in green, with consumer discretionary and real estate leading the gainers by adding 1.75 percent and 1.49 percent, respectively. Meanwhile, energy bucked the trend by losing 2.51 percent.

U.S. President Donald Trump said late Saturday that the United States had "obliterated" Iran's nuclear enrichment facilities, sharply escalating the conflict with Tehran. Iran's state-run news agency Tasnim reported that Tehran launched missile strikes on U.S. military bases in Qatar and Iraq on Monday.

The calibrated attacks came in apparent retaliation for U.S. airstrikes over the weekend that targeted Iranian nuclear facilities.

Investors' anxiety over further escalation eased as no injuries were reported from the retaliation and Trump acknowledged a notice in advance from Iran.

A new Reuters/Ipsos poll conducted over the past few days revealed widespread anxiety among Americans about the possibility of Iranian retaliation. According to the survey, 79 percent of Americans said they were concerned that Iran could target U.S. civilians in response to the airstrikes. Still, investors appeared hesitant to take on additional risk, with both stocks and cryptocurrencies trading with limited conviction.

"While Iran has flirted with closing the Strait of Hormuz, investors aren't terribly panicked about an oil market calamity, an equanimous view that's appropriate at this point," wrote Adam Crisafulli of Vital Knowledge in a Monday note. "Geopolitical risks are undoubtedly elevated in the Middle East right now, but our view remains that the extreme asymmetry of the conflict (with Iran's military capabilities, and those of its proxy partners, significantly degraded), coupled with Tehran's relative isolation (with few, if any, allies willing to come to its assistance) and ample global oil supplies, will help keep the fallout contained."

Energy markets remain on edge, with fears that the conflict could disrupt global oil supply if critical infrastructure is damaged or key shipping lanes in the region are blocked. That volatility risk is likely to persist as geopolitical tensions evolve.

The 10-year Treasury yield fell to 4.30 percent, down from 4.38 percent at Friday's close, hitting its lowest level since early May. Investors moved into safer assets as tensions flared in the Middle East, helping push yields lower.

Among mega-cap tech stocks, performance was mixed. Tesla jumped 8.23 percent, topping the S&P 500 after launching its highly anticipated driverless robotaxi service in Austin, Texas, marking a major step in the company's autonomous vehicle ambitions. Microsoft and Meta Platforms each rose about 2 percent.

Super Micro Computer plunged 9.77 percent after announcing plans to issue 2 billion U.S. dollars in convertible bonds, making it the worst performer in the S&P 500. Shares of Novo Nordisk, another notable mover, dropped 5.5 percent after the company released underwhelming results from its latest weight-loss drug trial. 


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