Highlights
A rally in chipmakers helped the major averages eke out modest gains on Monday with the S&P and Nasdaq setting new closing highs. The gains occurred despite risk-off sentiment due to bad news on prospects for a US-Iran settlement.
The Dow Jones industrial average and the S&P 500 both rose 0.2 percent and the Nasdaq was up 0.1 percent. Oil prices, bond yields and the dollar all rose.
President Trump rejected Iran's response to the last US settlement proposal and said the ceasefire was on life support. That suggested the US was set to resume its efforts to open the Strait of Hormuz or resume wider military strikes.
Chip stocks and other shares considered part of the AI trade remained the best performers on Monday with Qualcomm, Nvidia and Micron Technology leading the way. Also advancing Monday were energy shares with another boost from rising oil prices on the ongoing Strait of Hormuz closure.
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.