Highlights
Stocks rebounded to end a bit higher Monday after President Trump hinted at an early end to the Iran war. Equities had opened down very sharply with global markets on negative sentiment linked to the Iran conflict and rising oil prices.
The Dow Jones industrial average rose 0.5 percent, the broader S&P 500 gained 0.8 percent and the Nasdaq was up by 1.4 percent. US Treasury yields were mostly lower after days of gains, and the dollar rose, and oil prices actually retreated after big gains earlier.
Trump told CBS News the war is pretty much complete and that the US would ensure free passage in the Strait of Hormuz. He said he has no message for Iran's new leader but that he has someone else in mind for the job. Separately, Group of Seven representatives pledged efforts to steady oil markets but did not yet decide to release strategic oil reserves. The G-7 meeting is to resume on Tuesday.
In the recovery of risk appetite on the Trump comments, best performing sectors included information technology, communications services and health care. Energy lagged after outperforming for days on surging oil prices.
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.