On Wednesday, the S&P 500 index on Wall Street rose for the seventh consecutive day, thanks to investors’ hopes of avoiding a military strike on Syria, but the Nasdaq index ended in the red due to a sharp drop in Apple stock price.
The Dow Jones strengthened by 0.89 percent, to 15,326 points, while the S&P 500 rose by 0.30 percent, to 1,689 points. The Nasdaq index, on the other hand, weakened by 0.11 percent, to 3,725 points.
The Nasdaq came under pressure due to a 5.4 percent drop in Apple stock price, after slipping 2.3 percent the day before. In just two days, since it introduced new iPhone models, Apple has lost nearly 23 billion dollars in market value.
“More was expected from Apple’s presentation as the company usually impresses with new products or strategies. However, this time it disappointed investors who were hoping for a cheaper version of the iPhone or a new product line,” says Mark Luschini, a strategist at Janney Montgomery Scott.
And while the Nasdaq fell, the S&P 500 index rose for the seventh consecutive day, marking its longest positive streak since early July, during which it strengthened by 3.4 percent.
Investors were most encouraged by the possibility of the U.S. backing away from a military strike on Syria, following Russia’s proposal to place Syrian chemical weapons under international control.
Yesterday, in a televised appearance, U.S. President Barack Obama asked congressional leaders to postpone the vote on his proposal for military action against Syria as there is a possibility of a peaceful resolution to the Syrian crisis.
European stock prices also rose yesterday. The London FTSE index strengthened by 0.07 percent, to 6,588 points, while the Frankfurt DAX rose by 0.58 percent, to 8,495 points, and the Paris CAC increased by 0.06 percent, to 4,119 points.
