Breaking: Wall Street Rallies After U.S. Hits Iran's Nuclear Infrastructure
Most S&P 500 sectors were higher, with consumer discretionary leading, while energy lagged. Treasury yields dipped; the U.S. 2-Year Treasury yield fell about five basis points to 3.85% and the 10-Year yield eased about five basis points to 4.32%.
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Oil prices initially spiked but later gave back gains, trading near $74.38 a barrel as investors considered risks of Iranian retaliation, including possible Strait of Hormuz disruptions. Deutsche Bank's Jim Reid noted markets are likely focused on whether Iran might weaponize oil flows.
Iran's parliament voted to close the Strait of Hormuz symbolically, though final action rests with higher authorities. Michael Landsberg of Landsberg Bennett said that while geopolitical uncertainty remains, any pronounced market reaction could create buying opportunities from reactionary sellers.
This muted rally shows markets may be balancing geopolitical risks with underlying economic drivers, suggesting cautious optimism amid ongoing tensions.
A measured response might open entry points for disciplined investors as volatility ripples through markets.
This article first appeared on GuruFocus.
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