Highlights
Major stock indexes ended mixed on Tuesday with a correction in technology shares after their recent rally weighing on the S&P 500 and the Nasdaq. The Dow Jones industrial average rose 0.6 percent to a record closing high. The S&P 500 lost 0.6 percent and the Nasdaq was down 1.2 percent. WTI crude oil futures prices, bond yields and the dollar all declined.
Big technology shares profit-taking on their gains since the news of a tentative US-Iran peace deal broke over the weekend. The Mideast news sent oil prices and bond yields lower as inflation worries ebbed. Meanwhile, crude oil extended its selloff on Tuesday amid hopes for a reopening in the Strait of Hormuz. Lower energy prices spurred additional switching into cyclicals and energy price sensitive sectors like airlines and cruise lines. Among cyclicals seeing rotation out of tech, financials, materials, and industrials led the winners.
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.