Highlights
Stocks recovered ground Thursday as technology and AI shares rebounded after selling off on hawkishness noises coming from the Federal Reserve policy announcement and new Fed Chair Kevin Warsh.
The Dow Jones industrial average firmed 0.1 percent while the S&P 500 gained 1.1 percent and the Nasdaq was up 1.9 percent. Bond yields declined, the dollar rose, and oil prices edged up but remained much lower than a week ago.
Equities got a lift from lower bond yields and relief that oil prices are down with the expected reopening of the Strait of Hormuz. Markets appear hopeful that the US and Iranian signing of a memorandum of understanding will lead to free flow of energy through the region even as much uncertainty remains over key provisions of any peace settlement. Relief that oil prices have fallen back from their highs underpinned stocks.
Among sectors, chipmakers advanced to lead technology shares higher. Other leaders to the upside included homebuilders, airlines, travel & leisure, restaurant chains, and retail/apparel. Lagging were energy, big banks, pharma, and aerospace & defense.
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.