Stocks and other major assets faced further disappointment on Thursday after the market found that the progress supposedly made toward ending the Middle East war was much smaller than previously thought. Iran officially replied to the U.S.’s 15-point demand to end the war with its own five points, at which point President Trump stated that he would not commit to an agreement. Oil prices once again rose significantly after the news, with Brent crude trading above $107 per barrel.
All major asset gauges posted losses today, ranging from stocks and bonds to gold and crypto. The Dow Jones Industrial Average dipped 469 points to 45,960. The Nasdaq ended the day 2.38% lower at 23,587. The S&P 500 declined 1.74% to 6,477. Energy, utilities, and real estate were the only sectors to end in the green, while the market’s longtime favorite, technology, posted a loss of 3.11%.
The bond market erased its gains from yesterday and fell further into negative territory. The U.S. 5-year Treasury yield rose 10 basis points to 4.08%, and the 10-year yield rose 7 basis points to 4.4%. It is increasingly seen as the base case that interest rates will remain unchanged until October 2027, with the possibility of rate hikes within the next 12 months.
Gold continued its sell-off as well, falling below the 4,400 mark, while Bitcoin dropped below the 70,000 mark.
Today’s jobless claims continue to remain steady, without signs of mass layoffs. While the data offers some comfort, economic deterioration driven by high energy prices could change that in the near future.
This is Adams Wealth Advisor, and we will continue to cover the war and other factors affecting the market.