Highlights
Rising oil prices undercut stocks again Tuesday with the major averages giving up early gains to end marginally higher as the market remained focused on the Mideast war but investors appeared hopeful the conflict would wind down soon. The Dow firmed 0.1 percent, the S&P 500 rose 0.3 percent and the Nasdaq was up 0.5 percent. The dollar and bond yields declined.
A well-received 20-year bond auction helped bond yields move down to provide support to equities. On the negative side, lack of progress in unblocking the Strait of Hormuz and uncertainty over the Mideast war undercut risk appetite. Markets are also cautious ahead of the Federal Reserve rate announcement and associated comments from Fed Chair Jerome Powell. Investors will focus on what Powell has to say about the Fed's view of the implications of rising oil prices and other fallout from the Mideast
Energy stocks remained the best performer on rising oil prices. Consumer discretionary shares had a good day with travel companies up on favorable quarterly results. Airlines fared well after upbeat guidance from American and Delta.
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.