Highlights
President Trump's threats to attack Iran undercut risk appetite and stocks on Thursday. The Dow Jones industrial average slipped 0.5 percent while the broader S&P 500 and the Nasdaq both lost 0.3 percent. US Treasury yields declined, while the dollar and oil and gold prices rose.
Megacaps and big technology shares were mostly weaker as some traders sold into their rebound of Wednesday. Enterprise software shares resumed their selloff on Thursday on talk that AI would cannibalize their business. Stocks associated with private credit markets including Apollo and Blackstone fell Thursday after Blue Owl Capital spooked investors by saying it will reduce investor liquidity after selling loan assets. Walmart had a bad day after issuing disappointing guidance.
Energy stocks outperformed with rising oil prices after Trump said he would decide whether to attack Iran within 10 days and the US military buildup continued.
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.