Summary:
Dow Jones today jumps 1.2% as oil prices drop and Middle East tensions ease, with tech and financial shares leading gains ahead of the Fed meeting.
The Dow Jones Industrial Average surged 317 points, or 0.75% on Monday to close at 42,515.09, marking a sharp turnaround after last week's sell-off as investors welcomed easing geopolitical tensions and a drop in oil prices.
Markets found relief after reports suggested Israel and Iran may be stepping back from further escalation, calming fears of a broader conflict in the region. This shift in sentiment helped global equities recover from last week’s declines, when the Dow had plunged 565 points, its worst one-day loss since late May.
Crude oil prices retreated towards the $69–$72 per barrel range, alleviating inflation concerns and providing further support to equities. WTI crude futures settled at $71.77 a barrel, while Brent crude closed at $73.23. The recent pullback follows a period of heightened volatility driven by Middle East supply risks and falling US inventories.
Big technology shares led the rebound, with the Nasdaq up 1.52% to 19,701.21 and the S&P 500 rising 1.2% to 6,041.40. Top Dow performers included Intel (+3.17%), Goldman Sachs (+2.90%), and American Express (+2.73%). The broader market was buoyed by renewed optimism for a diplomatic solution in the Middle East and a more stable outlook for global energy prices.
Attention now turns to the US Federal Reserve’s policy meeting, which begins Tuesday. While no rate cut is expected, traders will be watching closely for any signals on future monetary policy as inflation shows signs of easing and economic data remains mixed.
The Dow Jones is now up 0.08% year-to-date, having recovered from recent turbulence, as markets weigh global risks and await fresh direction from central banks.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
XAGUSD rises near $36.50 as Israel-Iran conflict boosts safe-haven demand; markets await Fed's rate decision for further direction.
2025-06-17
The Stoxx 50 gained nearly 1% on Monday as risk sentiment improved. EU and US remain in technical and political talks over ongoing trade tensions.
2025-06-17
Australian dollar shows short-term strength in 2025, driven by economic recovery and easing trade tensions, but long-term risks remain.
2025-06-16
