Highlights
Stocks extended Tuesday's bounce off Monday's lows as markets latched onto hopes for an offramp in the Iran war. The Dow Jones industrial average firmed 0.5 percent, the broader S&P 500 gained 0.8 percent and the Nasdaq was up by 1.3 percent. US Treasury yields rose as economic data showed unexpected strength. The dollar fell and oil prices gained.
Investors seized on a report that Iran had signaled a willingness to negotiate an end to the current fighting. The market also reacted somewhat favorably to President Trump's pledge to take steps to improve oil supplies and steady the oil market.
Among sectors, big technology shares had a good day amid bargain-hunting on the hopes for the war to be relatively brief with limited fallout for the global economy. Rising bond yields were a negative for stocks. Rates rose after ADP reported payrolls up more than expected in February and after US purchasing managers said growth in services picked up more than the market anticipated in February.
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.