Highlights
Continuing hope for progress toward a settlement in the US-Iran war helped stocks rebound on Monday amid bargain-hunting after an initial selloff. Software stocks were notable winners after a long period of declines.
The Dow Jones industrial average gained 0.6 percent, the S&P 500 rose 1.0 percent and the Nasdaq was up 1.2 percent. Oil prices rise but bond yields declined as markets focused more on growth than inflation worries flowing from high oil prices. The dollar was mostly lower.
Risk assets saw a flight from risk early on after news that weekend US-Iran peace talks had ended with no progress. These markets recovered later as reports suggested negotiations continued, the two week ceasefire continued, and President Trump appeared inclined to hold off on renewed attacks apart from imposing a blockade on Iranian shipping.
Optimism at the start of earnings season underpinned stocks too. Earnings get going Tuesday with Citigroup, JP Morgan and others with Johnson & Johnson, Netflix and others reporting on Wednesday.
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.