Highlights
Stocks ended mostly weaker Wednesday in response to rising oil prices on worries about disrupted shipping in the Strait of Hormuz. The Dow Jones industrial average lost 0.6 percent, the broader S&P 500 slipped 0.1 percent and the Nasdaq was flat. US Treasury yields, the dollar and oil prices all gained amid news that three cargo ships had been struck around the Strait.
Oil prices rose on the Iran situation despite the release of 400 million barrels of oil by IEA member states. Rising oil prices have spurred worry of a spike in inflation and slowing economic activity. Inflation worries were not allayed by an as-expected February consumer price report as it was seen as old news given surging oil prices in March.
Risk appetite was also hurt by a report that the FBI had warned California law enforcement of potential Iranian drone attacks targeting the West Coast.
Best performers included energy stocks on rising oil prices, and technology, paced by Oracle, which rallied on an earnings beat and raised guidance. On the downside, financials lagged on credit quality worries, and consumer staples suffered after an earnings miss from Campbell's Soup.
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.