Highlights
Stocks fell Friday as risk appetite suffered after an unexpectedly hot inflation report and as investors brace for a US military strike against Iran. The Dow Jones industrial average lost 1.1 percent, the broader S&P 500 fell 0.4 percent and the Nasdaq was down 0.9 percent. US Treasury yields and the dollar declined while oil prices rose.
Reports suggesting President Trump is dissatisfied with Iran's position in negotiations and the ongoing buildup of military forces were construed to mean the US will attack Iran soon, which sent oil prices and energy stocks higher. Risk assets suffered from news that producer prices popped up by 0.5 percent in January, far above expectations.
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.