Home Depot Inc (NYSE:HD) shares are surging Friday morning as Wall Street reacts to a de-escalation in Middle East tensions.
The world’s largest home improvement retailer is finding support from broader market momentum following news of a strategic maritime reopening.
Geopolitical Optimism Lifts Markets
Investor sentiment shifted overnight after Iran’s Foreign Minister Abbas Araghchi said the Strait of Hormuz was “completely open” for commercial vessels during the current ceasefire.
President Donald Trump previously said that the Iran war “should be ending pretty soon.” These developments have propelled the SPDR S&P 500 ETF Trust (NYSE:SPY) and the Invesco QQQ Trust (NASDAQ:QQQ) to fresh record highs.
Oil Rout Supports Retail Sentiment
A massive plunge in energy prices is also providing a tailwind for consumer-facing stocks. WTI crude fell over 14% to $81 a barrel following the Hormuz announcement.
Technical Analysis
Home Depot is sitting in the middle of its 52-week range of $315.31 to $426.75. The stock is trading 5.5% above its 20-day simple moving average (SMA) but 2.3% below its 100-day SMA.
The moving average structure is still a headwind: the 20-day SMA is below the 50-day SMA, and the death cross that formed in December (50-day SMA below the 200-day SMA) keeps the longer-term trend picture from fully clearing. The stock is 1.5% below its 50-day SMA.
- Key Resistance: $394.50
- Key Support: $320.50
HD Price Action: Home Depot shares were up 3.99% at $350.60 at the time of publication on Friday, according to Benzinga Pro data.
Image via Shutterstock
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