Oil Prices Plummet as US-Iran Tensions Ease on Wall Street
Wall Street stocks drifted on Monday as tensions between the US and Iran eased, causing oil prices to drop 6.6% to $85.63 a barrel for October delivery. The S&P 500 fell 0.2%, while the Dow Jones Industrial Average rose 155 points, or 0.3%. The Nasdaq composite dropped 0.4%. Technology companies like Microsoft and Apple rose 3% and 0.8%, respectively, but Nvidia and Micron Technology slumped 5.1% and 4%. The price of Brent crude had surged to over $100 a barrel last week before easing.
The US-Iran conflict has disrupted global oil supplies, causing gasoline prices to surge and shipping costs for goods to rise. This has affected the world's economy, with markets in Europe rising after closing higher in Asia. Bond yields fell as the yield on the 10-year Treasury dropped to 4.65% from 4.69%. The Federal Reserve is expected to give an update on its interest rate policy Wednesday, which could impact inflation.
Investors are monitoring corporate earnings reports this week for signs of consumer stress and profit growth. Technology companies like Microsoft and Amazon will report results on Wednesday and Thursday, respectively. Meanwhile, the US and Iran have paused their attacks while negotiations to end the war continue.