Highlights
Stocks recovered from their worst levels Tuesday but still ended much lower as the market reacted to concern that the US-Israeli attacks on Iran and fallout from the war, including higher energy prices, will continue much longer than expected.
The Dow Jones industrial average lost 0.8 percent, the broader S&P 500 fell 0.9 percent and the Nasdaq was off by 1.0 percent. US Treasury yields, the dollar and oil prices all gained.
The market plunged at the open with losses of 2-3 percent in the major averages, after President Trump's statement on Monday that the conflict may be prolonged and that the US would do whatever it takes to achieve its objectives. Stocks sold off too in response to the widening conflict in the region and threat to oil and gas infrastructure, and the effective closure of the Strait of Hormuz. An afternoon recovery from the day's worst levels came after Trump posted that the US would supply insurance for ships transiting the strait and that US Navy would escort ships and defend them against attacks.
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.