Highlights
Stocks were in relief rally mode Monday as oil prices dropped after President Trump said the US would postpone his threatened strikes on Iranian power plants and after the president claimed there had been productive talks between the US and Iran. At 2 pm ET, the Dow was up about 1.8 percent while the S&P 500 and the Nasdaq were both up 1.4 percent. Bond yields and the dollar both declined on the news.
Trump posted on social media that there were"VERY GOOD AND PRODUCTIVE CONVERSATIONS REGARDING A COMPLETE AND TOTAL RESOLUTION OF OUR HOSTILITIES IN THE MIDDLE EAST." The unfortunate part about the latest development were reports from Iranian media saying there had been no talks, and speculating that Trump is planning to proceed with the escalation, which is expected to draw a similar response from Iran, to the extent that it retains military capabilities.
Megacaps were among the leaders to the upside, as were airlines and travel businesses that have been hard hit by rising energy prices and war worries.
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.