Commodities
Crude Oil Plunge Triggers Stocks Rally Ahead of US-China Summit
The S&P 500 Index closed up by +1.49% on Monday, while the Dow Jones Industrial Average rose by +0.71%, and the Nasdaq 100 Index surged by +2.83%. The rally in stocks was fueled by a plunge in crude oil prices, pushing bond yields lower and improving market sentiment.
WTI crude sank more than -4% to a 1.5-week low, and the 10-year T-note yield fell -3 bp to 4.96%. The decline in oil prices eased inflation expectations, causing T-notes to rise by +7 ticks.
The market was also lifted by anticipation of a summit between Presidents Trump and Xi Jinping this week. US Trade Representative Jamieson Greer said that the focus is on stability between the US and China, with talks centered on artificial intelligence, trade, and investment.