Highlights
Major stock indexes rebounded on Thursday after oil prices fell back on President Trump’s claim that Iranian leaders reached out to him about a peace deal. The Dow Jones industrial average firmed 0.3 percent while the S&P 500 gained 0.8 percent and the Nasdaq was up 1.3 percent. Bond yields, the dollar, and oil prices all declined.
Earlier, oil prices and bond yields were higher and stocks lower in a risk-off move following a new round of strikes between the US and Iran and Trump’s statement that the ceasefire was over and that talks were a waste of time. But that reversed on Trump's new claim about an overture from Iran.
Among sectors, the chip/memory sector led the winners in a return of the momentum trade. The broadening out trade also boosted stocks Thursday, led by banks, credit cards, restaurant chains, auto suppliers, and homebuilders.