Highlights
Hopes for progress in US-Iran peace talks, falling oil prices, and a benign inflation report helped stocks extend Monday's advance on Tuesday. The Dow Jones industrial average gained 0.7 percent, the S&P 500 rose 1.2 percent and the Nasdaq was up 2.0 percent. Bond yields and the dollar declined.
News that producer prices rose much less than expected in March even as energy prices spiked reassured markets hoping lower inflation would allow the Federal Reserve to cut interest rates. That, along with news suggesting positive momentum in US-Iran negotiations, kept risk-on trading alive for a second straight day.
Among sectors, big technology shares advanced including chipmakers though Apple was a notable laggard. Other outperformers included restaurant chains, autos, credit cards, and media. Lower oil prices helped lift airlines and other travel stocks. Energy stocks lagged with the decline in oil.
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.