Highlights
Stocks recovered from steep early losses Thursday to end nearly flat after reports of Iranian plans to allow shipping through the Strait of Hormuz -- though oil prices remained markedly higher on the day. The Dow was down 0.1 percent, the S&P 500 gained 0.1 percent and the Nasdaq firmed 0.2 percent. Bond yields edged down while the dollar rose.
Risk assets dropped and oil prices surged early Thursday amid disappointment that President Trump's speech Wednesday night offered no clarity on plans to wind down the conflict and as his comments appeared to threaten escalation and more strikes, including at Iran's civilian infrastructure. But stocks rebounded through the day as traders seized on news that Iran and Oman were drafting a plan to manage traffic in the Strait. On the negative side were new US attacks on Iran and the market perception that the president has no plan to end the 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.