Pinned Post

The stock market rallied and oil prices sank after Wall Street saw a chance for de-escalation in the Middle East after Iran’s retaliatory missile attack aimed at a U.S. military base in Qatar.

The Dow Jones Industrial Average rose 375 points, or 0.9%. The S&P 500 gained 1%. The Nasdaq Composite rallied 0.9%.

Brent crude oil futures, the international benchmark, fell 7.2% to $71.48 a barrel, its largest one-day drop since July 5, 2022, according to Dow Jones Market Data. WTI crude oil futures sank 7.2% to $68.51 a barrel, its lowest price since June 12.

Iran’s Revolutionary Guard said in a statement translated into English that it attacked the Al-Udeid base in Qatar “with a devastating and powerful missile attack in Operation Besharat Fatah.”

Qatar’s Ministry of Defense said it successfully intercepted the missile attack targeting the base. It added that there were no deaths or injuries.

President Donald Trump echoed this assessment in a post on Truth Social minutes before the market closed, noting no Americans were harmed and “hardly any damage was done.”

“I want to thank Iran for giving us early notice, which made it possible for no lives to be lost, and nobody to be injured. Perhaps Iran can now proceed to Peace and Harmony in the Region, and I will enthusiastically encourage Israel to do the same. Thank you for your attention to this matter!” Trump concluded.

The attack was in response to the U.S.’s strikes against three nuclear sites in Iran over the weekend. Leading up to the attack, oil prices rose amid fears Trump would get the U.S. involved in Israel’s conflict with Iran. Among the worries were whether Iran would respond by closing the Strait of Hormuz—a move that would send oil prices spiking but also hit Iran’s own economy and harm allies that buy oil from Iran.

“This is about the best case scenario that we could hope for, and I think this is why you’re seeing oil down so much,” Sevens Report Research’s Tom Essaye told Barron’s. “This is a very, very weak response from Iran that is definitely not in any way intended to create another response from the U.S.”

The S&P snapped a three-trading-day losing streak and is now off about 2% from its Feb. 19 record close.

“An ‘All-time high by the 4th of July’ remains live, and the breakout above 6,150 will project measured upside to 7,400,” writes Rich Ross, Evercore ISI’s head of technical analysis. “July is ‘the best month’ for equities over the past 20 years.”

The next test for the market may be Federal Reserve Chair Jerome Powell’s testimony before Congress on Tuesday and Wednesday. Michelle Bowman, the Federal Reserve’s vice chair for supervision, said she would support lowering interest rates as soon as July if the central bank sees inflation pressures remain contained.

today: US stock markets opened sharply lower on Monday after Moody’s downgraded the country’s sovereign credit rating, citing concerns over escalating federal debt and long-term fiscal slippage.

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The downgrade rattled investor confidence, triggering broad-based selling across equities and lifting market volatility.

At the opening bell, the

dropped 288.77 points or 0.68 per cent to 42,365.97, while the

fell 56.68 points or 0.95 per cent to 5,901.70. The Nasdaq Composite led the decline, plunging 235.60 points or 1.23 per cent to 18,975.50.

The downgrade by Moody’s was prompted by projections that US federal deficits could rise to nearly 9 per cent of GDP by 2035, up from 6.4 per cent in 2024, mainly due to higher interest payments, entitlement costs, and relatively weak tax revenue.

The rating agency also flagged the potential extension of Trump-era tax cuts, which could add $4 trillion to the deficit over the next decade.

The caution sparked a flight to safety, pushing the CBOE Volatility Index (VIX) up 11.14 per cent to 19.16, and lifting the yield on the 10-year US Treasury to 4.539 per cent, up 10 basis points.

Commodities reacted with mixed signals. Gold surged $49 or 1.54 per cent to $3,236.20 per ounce as investors sought safe-haven assets, while US crude oil edged lower by $0.07 or 0.11 per cent to $62.42 per barrel, reflecting broader market risk aversion.

On the currency front, the euro gained against the dollar, with the EUR/USD pair rising 0.833 per cent to 1.126, while the dollar slipped against other major currencies amid concerns over US fiscal health.

The opening weakness follows a week of solid market gains, which were partially fuelled by hopes of easing US-China trade tensions. However, the renewed focus on structural debt challenges and policy uncertainty in Washington has once again put global risk sentiment on edge.

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Earlier, Futures trading reflected the nervousness, with the S&P 500 down 1.1 per cent, the Dow Jones Industrial Average futures falling 0.6 per cent, and the Nasdaq futures tumbling 1.5 per cent.

Investor anxiety over the US fiscal path weighed on the US dollar, which slipped to 144.96 yen, down from 145.65 yen. The yield on the 10-year US Treasury climbed to 4.55 per cent, up from 4.44 per cent Friday, as traders sought safer assets.

In corporate headlines, Capital One finalized its long-anticipated acquisition of Discover, over a year after it was announced. Shares of Capital One dipped slightly, down just over 1 per cent in premarket trading.

Another market catalyst this week is JPMorgan’s investor conference, where comments from CEO Jamie Dimon—often outspoken on global economic risks—will be closely monitored. Shares of JPMorgan were slightly lower ahead of the opening bell.

In Europe, sentiment was similarly weak. Germany’s DAX slipped 0.1 per cent, France’s CAC 40 declined 0.8 per cent, and the UK’s FTSE 100 shed 0.4 per cent.

In Asia, markets also closed lower after Chinese data revealed a softer-than-expected 5.1 per cent rise in April retail sales and a slowdown in industrial output growth to 6.1 per cent, from 7.7 per cent in March. The moderation suggests a possible build-up in inventories and a more cautious tone from consumers and businesses amid the ongoing trade friction with the US

Hong Kong’s Hang Seng edged down 0.1 per cent to 23,332.72, while the Shanghai Composite was nearly flat at 3,367.58.

Alibaba’s shares in Hong Kong dropped 3.4 per cent following reports that US regulators are reviewing a potential Apple-Alibaba AI collaboration in China.

Elsewhere in Asia, Tokyo’s Nikkei 225 fell 0.7 per cent, South Korea’s Kospi dropped 0.9 per cent, Australia’s S&P/ASX 200 slid 0.6 per cent, and Taiwan’s Taiex was down 1.5 per cent.

Oil prices were also under pressure. US crude declined 58 cents to $61.39 per barrel, while Brent crude, the international benchmark, slipped the same amount to $64.83.

US Stock Market Highlights: Dow slides more than 950 points as Trump rips Fed Chair Powell, reigniting investor worries

CNBCTV18.COM | By CNBCTV18.COM Apr 22, 2025 4:12 AM IST (Updated)

US Stock Market Highlights: US markets slumped on Monday (April 21) amid renewed political pressure on the Federal Reserve and a lack of progress in global trade negotiations. The Dow Jones Industrial Average traded 971.82 points lower, or 2.48%. to close at 38,170.41. The S&P 500 shed 2.36% and ended at 5,158.20, and the Nasdaq Composite lost 2.55% to settle at 15,870.90.

US Stock Market Highlights: US markets slumped on Monday (April 21) amid renewed political pressure on the Federal Reserve and a lack of progress in global trade negotiations. The Dow Jones Industrial Average traded 971.82 points lower, or 2.48%. to close at 38,170.41. The S&P 500 shed 2.36% and ended at 5,158.20, and the Nasdaq Composite lost 2.55% to settle at 15,870.90. Heavy losses among the “Magnificent Seven” tech giants weighed on the broader market. Tesla sank 7%, Nvidia fell 6%, and Amazon, AMD, and Meta each slid 4%. Industrial bellwether Caterpillar also declined, shedding 3%. The sell-off intensified after President Donald Trump escalated his criticism of Fed Chair Jerome Powell, casting fresh doubts on the central bank’s independence and unnerving investors already cautious about trade tensions.