Home Market News Dow Jones recovers 1,100 points from the lows to end higher; Oil falls on Trump war remarks
Trump’s remarks triggered a fall in oil prices, which had surged as much as 27% on Monday. Brent now trades below the mark of $90 a barrel, nearly giving up everything that it gained on Monday towards an intraday high of $119.5 a barrel. US crude prices are also below the $90 per barrel mark.
Benchmark indices on Wall Street ended an extremely volatile session with gains after US President Donald Trump said that the war in Iran will “end very soon” triggering a drop in oil prices and a reversal in risk assets.
The Dow Jones ended with gains of 250 points, after having staged a 1,100-point recovery from the lows of the session. The S&P 500 and the Nasdaq also recovered 160 and 600 points from their respective lows of the day. At the lowest point, the Dow Jones was down over 900 points, while the S&P 500 and Nasdaq were down 1.5% each.
Chip stocks also contributed to the recovery on Wall Street with stocks like Nvidia gaining 2% and its peers such as AMD, Broadcom and Micron gaining between 4% to 5% each.
Addressing Republican lawmakers in Florida, Trump said that the US and Israel have achieved “major strides” towards completing their military objectives and that Iran now has no airforce, navy, or anti-aircraft equipment.
Trump’s remarks triggered a fall in oil prices, which had surged as much as 27% on Monday. Brent now trades below the mark of $90 a barrel, nearly giving up everything that it gained on Monday towards an intraday high of $119.5 a barrel. US crude prices are also below the $90 per barrel mark.
Crude futures had already begun to stage a pullback after the Financial Times first reported about leaders of the G7 meeting and deciding on releasing emergency oil reserves to cool down prices. However, France, which currently has the Presidency of the group, said that the G7 is “not there yet” to agree to release the emergency reserves. It remains to be seen whether the group still takes any decision with regards to this after Trump’s remarks.
However, remarks from both Trump and Iran suggest that the war could be far from over. Trump warned Iran that any attempt at blocking energy supplies could trigger much harder attacks on the country, while an Iran foreign ministry spokesperson told CNBC that ships passing through the Strait of Hormuz “should be very careful” till the situation remains fragile.
https://www.cnbctv18.com/market/dow-jones-snp-500-nasdaq-sharp-recovery-trump-iran-war-remarks-oil-fall-19865060.htm
