US open: Stocks record early gains as investors shrug off retaliatory strike by Iran
US stocks opened slightly higher on Wednesday despite news that Iran had fired rockets at two Iraqi bases hosting American troops, albeit without killing any servicemen.
As of 1530 GMT, the Dow Jones Industrial Average was up 0.15% at 28,625.92, while the S&P 500 was 0.26% firmer at 3,245.62 and the Nasdaq Composite came out the gate 0.30% stronger at 9,096.21.
The Dow opened 42.24 points higher on Wednesday after closing lower in the previous session as investors continued to monitor headlines surrounding tensions in the Middle East.
Sentiment took a blow late on Tuesday after reports that the Al-Assad airbase in Western Iraq had been struck by multiple projectiles.
The Pentagon later confirmed the report, stating: "Iran launched more than a dozen ballistic missiles against US military and coalition forces in Iraq. It is clear that these missiles were launched from Iran and targeted at least two Iraqi military bases hosting US military and coalition personnel at Al-Assad and Irbil."
President Donald Trump tweeted: "All is well! Missiles launched from Iran at two military bases located in Iraq."
"Assessment of casualties & damages taking place now. So far, so good! We have the most powerful and well-equipped military anywhere in the world, by far! I will be making a statement tomorrow morning."
SpreadEx analyst Connor Campbell said: "What could have been an absolute nightmare session was actually fairly boring, investors reacting with relatively sanguine attitude.
"Initially the markets had opened notably – if not drastically – in the red, tumbling after Iran launched a missile attack on two US bases in Iraq overnight. However, the lack of immediate bombast from Donald Trump, alongside the claim from Iranian foreign minister Javad Zarif that the country does 'not seek escalation or war', appeared to reassure investors, allowing a bit of green to sneak into the session."
On the data front, private-sector employment in the US rose more than expected in December, according to figures released by ADP on Wednesday.
Employers added 202,000 jobs last month versus expectations of a 160,000 increase. Meanwhile, the November total of jobs was revised up to 124,000 from 67,000.
Consumer credit figures will be published at 2000 GMT.
In corporate news, Boeing shares were down 1.78% at the bell after a 737 airliner burst into flames shortly after takeoff, killing all 176 people on board, while shares in pharmacy chain Walgreens Boots Alliance were down 6.63% after earnings fell short of Wall Street expectations.