Wall Street Rebounds from Seven-Month Low
US stock indexes rebounded from seven-month lows on Monday, supported by a rally in US government bonds that pushed down yields across all tenors as markets continued to assess the impact of higher energy prices on the economy. The S&P 500, Dow, and Nasdaq 100 each gained about 0.7%, signaling improved sentiment after earlier pressures triggered by rising funding costs and geopolitical uncertainty.
The equity gains came despite a rebound in oil and energy prices after Houthi attacks raised risks to exports via the Red Sea, while President Donald Trump issued additional threats against Iran if a deal is not reached soon. However, the decline in yields from their peaks indicates the market is beginning to weigh the risk of slowing growth due to energy disruptions along with inflationary pressures—a combination that previously pressured stock valuations through credit channels and capital costs.
In sectors, technology stocks led the recovery after Friday's sharp decline widened the Nasdaq's underperformance. Nvidia, Amazon, and Microsoft each rose more than 1%. Banking stocks also rose as pressure on the bond market eased, with JPMorgan and Bank of America rising more than 1%.
Source: Newsmaker.id
