United States stocks were mostly higher on Wednesday, putting the S&P 500 on track for a seventh straight day of gains as a potential military strike against Syria was delayed, further easing geopolitical concerns.
Wall Street showed resilience even as Apple Incorporated, the largest US publicly traded company by market capitalisation, slumped by nearly five per cent a day after it unveiled new iPhone models and prices.
Reuters reported on Wednesday, that the stock was the biggest decliner in the S&P and kept the Nasdaq modestly lower.
Market nervousness over a possible US-led strike against Syria abated as US President Barack Obama, faced with resistance in polls and Congress, said a Russian offer to pressure Syria to place its chemical weapons under international control raised the chances of putting off a strike.
The President also asked Congressional leaders to delay a vote on to authorize military force in order to allow diplomacy to play out.
“The speech lessens some of the macro concerns out there, and as the worst-case scenario around Syria becomes more unlikely, investors are rotating back towards the market,” said Eric Teal, chief investment officer at First Citizens Bancshares in Raleigh, North Carolina.
The S&P 500 has risen by about 3.3 per cent over the past seven sessions, its longest winning streak since July.
Apple shares fell by five per cent to $469.79, extending a steep decline from the previous session. The stock is on track for its worst two-day performance since April 18, and its loss of nearly $23bn in market capitalisation is roughly the total size of Dell.
The tech titan’s product announcements on Tuesday disappointed investors who were hoping for a cheaper version of the iPhone or a new product line. Credit Suisse, UBS and Bank of America Merrill Lynch each lowered their rating on the stock.