Highlights
Major stock indexes retreated Wednesday after five straight days of gains to record highs as investors took profits and pared positions amid rising oil prices. The Dow Jones industrial average lost 1.2 percent while the S&P 500 slipped 0.7 percent and the Nasdaq was down 0.9 percent. WTI crude oil futures, the dollar, and bond yields all rose after renewed Middle East clashes and as markets scale back hopes for a negotiated settlement to the US-Iran war.
Oil prices also were bolstered by news that US oil inventories dropped again in the latest week. News from the ISM that services business expanded by more than expected in May did not attract much attention. Energy stocks were among the day's best performers on the resumption in oil price increases. Other winners included defensive plays like consumer staples and health care. Leading the losers were technology, which has been the big winner lately, and consumer cyclical stocks.
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.