The U.S. stock market went up Thursday, June 20, driving a benchmark index to a new record high despite tensions over Iran’s attack on a U.S. drone.
The S&P 500 rose 27.7 points, or 0.95%, to a record close of 2,954.18, surpassing its previous record set on April 30.
Two other key indices also finished higher, with Dow Jones Industrial Average up 0.94% at 26,753.17 and the Nasdaq Composite up 0.80% at 8,051.34.
President Donald Trump seemed delighted with a bullish market, tweeting merely: “S&P closes at Record High!”
S&P closes at Record High! https://t.co/C5nOXIQ7EJ
— Donald J. Trump (@realDonaldTrump) June 20, 2019
His comments on Iran’s downing of a U.S. drone helped boost oil prices, then supported the energy stocks as a consequence, according to CNBC.
Brent crude oil settled the day up $2.79, or 4.5%, at $64.61 a barrel, and U.S. WTI crude ended up $2.89, or 5.4%, at $56.65 a barrel.
In a tweet Thursday, President Trump said, “Iran made a very big mistake” after Tehran shot down a U.S. military drone, adding concerns to an ongoing tension between the two countries following attacks on two oil tankers near the Strait of Hormuz last week that the U.S. has blamed on Iran.
The markets also gained after the Federal Reserve signaled it would cut interest rates in the near future.
Federal Reserve (Fed) Chairman Jerome Powell said Wednesday many of its policymakers now see the case has strengthened for more accommodative policy, and they believe “some cut to the fed funds rate would be appropriate in the scenario they see as most likely.”
President Trump has recently said the U.S. stock market and economy could be much better if Fed had not raised interest rates over the last two years, predicting that Dow Jones would be 10,000 points higher.
The president, however, still welcomed the strong performance of the world’s largest equity market under his current tenure. In a tweet on June 19, he wrote: “Since Election Day 2016, Stocks up almost 50%, Stocks gained 9.2 Trillion Dollars in value, and more than 5,000,000 new jobs added to the Economy.”
“If our opponent had won, there would have been a market crash, plain and simple!” he added.