Highlights
More signs of progress toward peace in the US-Iran war kept risk-on trading going and oil prices plunging Friday to finish a remarkable week of gains. The Dow Jones industrial average advanced 1.8 percent, the S&P 500 rose 1.2 percent and the Nasdaq was up 1.5 percent. Bond yields dropped amid declining inflation worries, due to falling oil, and the dollar was mostly lower.
Iran's foreign minister said the Strait of Hormuz was now open and President Trump predicted a deal between Iran and the US soon, even though the US maintained its blockade. The developments have spurred big declines in oil prices from recent highs and have kept the stock rally going. Both the S&P 500 and the Nasdaq set fresh record closing highs after advancing through the week.
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.