Oil Prices Plummet as Tensions Ease, Boosting US Stocks
US stocks have rallied near an all-time high after oil prices plummeted, easing concerns about inflation. The S&P 500 surged 1.5% on Monday and is now just 0.1% below its record set earlier this summer.
The Dow Jones Industrial Average reached a new high, with the Nasdaq composite climbing 2.1%. Brent crude's price fell 4.7% after President Donald Trump announced that he would hold off on ordering new strikes against Iran, which helped Treasury yields to drop in the bond market.
Airlines and other companies with big fuel bills saw their stock prices rise as a result of the lower oil costs. The US dollar also weakened sharply against the Japanese yen, dropping from 163 to below 160 yen after regulators were suspected of stepping in.
US President Trump said that the US gained 'financial benefit' from the intervention, calling it a 'signal of friendship.' Finance Minister Satsuki Katayama stated that the finance ministry had purchased yen in coordination with the US Treasury Department.