On Monday, the S&P 500 Index closed up 0.71%, the Dow Jones Industrial Average increased by 0.39%, and the Nasdaq 100 Index rose by 1.13%. This market movement followed concerns over oil prices spiking above $100 per barrel after Israeli airstrikes on Iranian fuel depots. However, prices later normalized as G-7 finance ministers vowed to release strategic oil reserves if necessary, and President Trump suggested the war in Iran might conclude soon.
Notable market responses included a mixed bag for oil stocks; Valero Energy fell over 3%, while airline shares, such as United Airlines and Delta Air Lines, rallied more than 2% after Trump’s comments. The earnings reporting season saw over 74% of S&P 500 companies beating expectations, with a projected 8.4% growth for the fourth quarter. Economic indicators remain weak, as evidenced by a 92,000 drop in February payrolls and a 0.2% decline in January retail sales.
International markets were affected by the uncertainty surrounding oil prices, with the Euro Stoxx 50 down 0.61% and Japan’s Nikkei 225 plunging 5.2%. Meanwhile, the likelihood of a 25 bp rate cut by the Federal Reserve at the next policy meeting on March 17-18 stands at 4%.
