Highlights
Stock indexes ended mixed Wednesday with weakness in financials and industrials depressing the Dow while growth stocks outperformed. Renewed worries that the US-Iran conflict may be drawn out depressed risk appetite. Trading was cautious as the market awaited earnings from key megacaps.
The Dow Jones industrial average slipped 0.6 percent, the S&P 500 was flat and the Nasdaq firmed 0.1 percent. Bond yields, the dollar and oil prices all rose.
Rates were pressured higher by news that current Federal Reserve Chair Jerome Powell will remain on the Fed board after Kevin Warsh takes over as chair as it bolstered the view that Fed officials are unlikely to cut interest rates this year. Yields were also lifted by news that three Fed officials argued against including any bias toward easing in the latest policy statement. Oil prices moved up after President Trump rejected Iran's peace offer, which means no progress in opening the Strait of Hormuz or ending the US-Iran war.
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.