Highlights
Major stock indexes are down 1-2 percent early afternoon on Thursday as rising oil prices and no letup in the Iran war and disruption to energy supplies continue. Stocks are broadly lower, including the megacap space that provided support on Wednesday. The dollar and bond yields are higher on rising oil prices and positive economic indicators.
Among sectors, surging oil prices are bolstering energy shares. Other outperformers include defensive plays such as utilities and consumer staples. Leading the decliners: industrials, consumer discretionary, communications services, and technology. Financials remain under selling pressure in light of credit worries.
In economic data, unexpectedly low jobless claims and a smaller than expected trade gap pointed to more than expected economic resilience before the energy price shock flowing from the Iran conflict.
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.