New York stocks closed slightly higher on the 6th (local time), one day before the U.S.-imposed deadline to strike Iranian power plants and other infrastructure.
On the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose 0.36% to close at 46,669.88. The S&P 500 gained 0.45% to finish at 6,612.02, and the Nasdaq Composite climbed 0.54% to end at 21,996.34.
U.S. President Donald Trump held a press conference at the White House, where he ramped up maximum pressure on Iran, saying, "We can eliminate Iran overnight. That could be tomorrow." While his remarks were largely hawkish in tone, maximizing pressure on Tehran, he did not rule out the possibility of negotiations. "There are active and willing participants in Iran who want to negotiate. They want to be able to make a deal," he said.
Tim Griski, chief portfolio strategist at New York-based Ingalls & Snyder, said, "The stock market was mostly flat today." He added, "All attention is focused on the geopolitical situation, and investors are watching whether President Trump will follow through on his threat to resume bombing energy facilities on the night of the 7th."
Amid high uncertainty, opinions are divided over the outlook. Ryan Detrick, chief market strategist at the Carson Group, told Reuters, "The reality is, hopefully, we are inching toward some kind of deal." He added, "Heading into earnings season, there is optimism that companies will once again deliver solid results." In contrast, Michael Rosen, chief investment officer (CIO) at Angeles Investment Advisors, cautioned, "The market may be underestimating the scale of global economic disruption." He added, "The immediate impact of energy supply disruptions does not seem to be properly recognized by the market."
International oil prices closed slightly higher. Brent crude futures for June delivery rose 0.7% to $109.77 per barrel. West Texas Intermediate (WTI) crude futures for May delivery settled at $112.41, up 0.8%.
Growing concerns over distress in the U.S. private credit market sent shares of Blue Owl Capital, a major private credit investment firm, to a record low. The company's stock fell 1.4% to close at $8.45. Jamie Dimon, CEO of JPMorgan Chase and widely known as the "Emperor of Wall Street," warned in his annual shareholder letter that problems with private loans extended to highly leveraged companies could be more serious than expected.