Stocks edged slightly lower after a day of theatrical confusion. After yesterday’s announcement, conflicts in the Middle East continued. Oil prices dropped significantly at one point during the day after the Energy Secretary posted that an oil tanker had been escorted out of the Strait of Hormuz. Stocks responded positively to the news; however, the post was later deleted, with the White House confirming that the U.S. Navy did not escort a tanker or any vessel. This led to a rebound in oil prices and stock indices, wiping out their earlier gains.
All major stock indices ended the day in the red, though some were practically flat. The Dow Jones Industrial Average declined 34 points to 47,707. The NASDAQ declined 0.04% to 24,956. The S&P 500 lost 0.21% to 6,781. The technology sector was the only one not posting losses, ending the day unchanged; all other sectors ended the day in the red.
The bond market also slipped slightly. The U.S. 5-year Treasury yield stayed the same at 3.74%, and the 10-year yield rose 2 basis points to 4.15%.
Economic data came in mixed. On the one hand, small business confidence surprised to the downside due to a weaker sales outlook and slower employment. On the other hand, U.S. existing home sales surprised meaningfully to the upside, supported by lower mortgage rates and modest growth in asking prices.
There will be a reading on an important inflation gauge tomorrow that could help us draw a clearer picture of future monetary policy trajectories. This is Adams Wealth Advisor, and we will continue to bring you the latest updates in the market.