Highlights
Stocks rebounded Monday as oil prices dropped and risk appetite returned on news of a tentative US-Iran peace deal. The Dow Jones industrial average rose 0.9 percent. The S&P 500 rose 1.7 percent and the Nasdaq was up a big 3.1 percent. WTI crude oil futures and bond yields fell while the dollar declined.
The US-Iran deal announcement, which was thin on details, calls for a reopening of the Strait of Hormuz, and that news pushed down oil prices and eased worries about inflation that have lifted interest rate expectations. Big technology shares led the winners with many stocks showing gains of more than 2 percent. Stocks seen as especially sensitive to energy prices outperformed, including airlines and cruise lines.
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.