Highlights
Stocks edged up Monday with energy stocks outperforming on a big rally in oil prices. The Dow industrials rose 1.0 percent, the S&P 500 gained 0.4 percent, and the Nasdaq was up 0.3 percent. US Treasury yields fell while the dollar and oil prices rose.
Energy stocks advanced after Saudi Arabia and other big oil exporters surprised the market with an output cut. Later, a softer than expected US manufacturing purchasers report pushed down bond yields and fed the narrative that a Federal Reserve policy pivot is coming. Analysts focused on a downtick in manufacturing new orders as a sign of more weakness to come.
Other strong sectors included pharma, managed care, drugstores, aerospace & defense, and insurance. FANMAGs were mixed. On the downside were airlines, chipmakers, transports, banks, asset managers, and electric vehicles, with Tesla having a bad day as investors apparently fret over the impact of the EV maker's price cuts and rising competition.
Energy stocks advanced after Saudi Arabia and other big oil exporters surprised the market with an output cut. Later, a softer than expected US manufacturing purchasers report pushed down bond yields and fed the narrative that a Federal Reserve policy pivot is coming. Analysts focused on a downtick in manufacturing new orders as a sign of more weakness to come.
Other strong sectors included pharma, managed care, drugstores, aerospace & defense, and insurance. FANMAGs were mixed. On the downside were airlines, chipmakers, transports, banks, asset managers, and electric vehicles, with Tesla having a bad day as investors apparently fret over the impact of the EV maker's price cuts and rising competition.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
