Highlights
Hopes for a resumption in US-Iran peace talks and a strong showing from technology shares lifted equities Friday. The Dow Jones industrial average slipped 0.2 percent but the S&P 500 rose 0.8 percent and the Nasdaq advanced 1.6 percent. Bond yields declined on the day Friday although they ended higher on the week. Oil prices declined on hopes for an end to the Iran war, and the dollar was also lower.
An early report that Iranian diplomats were headed for Pakistan for renewed peace talks rekindled hopes for an early end to the war. Separately, a better than expected quarter from Intel set off a huge rally in chipmaker stocks and powered the Nasdaq higher.
News that the Department of Justice was suspending its criminal investigation of the Federal Reserve and its chair, Jerome Powell, was seen as adding to the likelihood that President Trump's nominee, Kevin Warsh, would be confirmed soon to the position, succeeding Jerome Powell. Markets marginally increased their expectation of rate cuts in response. It's unclear still whether the nomination can now proceed.
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.