S&P 500 Near Record as Oil Retreat Eases Inflation Worries
Cooling Middle East tensions pushed oil lower, lifting stocks and bonds amid subsiding inflation fears. The S&P 500 gained 1.5%, while Amazon's market cap surpassed $3 trillion.
Equities and bonds rallied on Monday as an easing of Middle East tensions sent oil prices sharply lower, soothing inflation concerns. The S&P 500 jumped 1.5%, pulling within range of its all-time high, while a gauge of megacap stocks had its best session since March. Amazon's market capitalization crossed the $3 trillion mark for the first time.
U.S. crude oil settled near $80 a barrel, down from recent peaks, as fears of supply disruptions abated. The drop in energy prices added fuel to a broad-based rally in risk assets.
Treasury yields fell across the curve, reflecting renewed demand for safe-haven bonds and expectations that slowing energy costs could keep inflation on a downward path.
Source: First Squawk