Highlights
Stocks fell back broadly Thursday as oil prices continued to rise amid escalating war in the Middle East and reaction to news of a tanker being struck in the Persian Gulf.
The Dow Jones industrial average dropped 1.6 percent, the broader S&P 500 lost 0.6 percent and the Nasdaq was off by 0.3 percent. US Treasury yields, the dollar, and oil prices all gained.
Hopes for a negotiated end to the Iran war receded Thursday to weigh on stock. Major indexes recovered lost ground in the afternoon on more reports that the Trump administration is considering aggressive steps to bring down oil prices, and China is pressing Iran to allow shipping to resume through the Straits of Hormuz.
Consumer staples and health care were among the day's worst performers alongside materials and industrials. Only three sectors rose: Energy shares outperformed on rising oil prices; software stocks rebounded to lift technology stocks, and gains in Amazon helped consumer discretionary stocks outperform.
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.