Highlights
Stocks added to Tuesday's rally on Wednesday as investors continued to trade on hopes for a near-term end to the Iran conflict and oil prices retreated. The Dow rose 0.5 percent, the S&P 500 gained 0.7 percent and the Nasdaq advanced 1.2 percent. Bond yields edged up while oil prices and the dollar declined.
President Trump told reporters late Tuesday he expects an end to US involvement in two to three weeks. On Wednesday he said Iran was asking for a ceasefire but he was insisting on a reopening of the Strait of Hormuz first. Iranian officials denied they had asked for a ceasefire. Trump is scheduled to make a televised speech on Wednesday night to discuss the Iran situation.
Gains on Wednesday were again nearly across the board with nine of 11 sectors showing gains with analysts saying many stocks have been oversold in the losses over several weeks. Industrials were the best performer along with communications services, technology, consumer discretionary and materials. Energy and consumer staples lagged.
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.