Highlights
Stocks lost ground Tuesday while oil prices, the dollar, and bond yields rose as it became more uncertain that US-Iran peace talks would proceed as markets had anticipated earlier in the day. The Dow Jones industrial average, the S&P 500, and the Nasdaq all slipped 0.6 percent.
Stocks were hurt by news late in the day that Vice President JD Vance would not be headed for talks in Islamabad on Tuesday despite White House assurances earlier that he would go. On the positive side was President Trump's announcement that he would extend the ceasefire indefinitely despite saying earlier he would not do so. Iran has objected to the continued US blockade of its ports and said that is not in keeping with the ceasefire agreement.
In other news on Tuesday, President Trump's nominee to be Fed chair, Kevin Warsh, said at his nomination hearings that he would keep monetary policy independent. Markets generally do not expect Warsh to press for rate cuts in the near term given worries about inflation but they do expect Warsh to be more dovish over time than the current Fed consensus. Meanwhile, US retail sales came in a bit stronger than expected with sales up 1.7 percent and sales ex-autos up 1.9 percent in March.
Among key stocks, most Magnificent Seven shares lost ground, including Apple, which announced a new leader. United Health was a big winner, pacing the Dow, after better than expected quarterly results.
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.