We’re starting the show with one of the biggest news that happened over the weekend: Iran’s attack on Israel.
Specifically, we’re talking about oil prices. The good news is that there is a general belief among oil investors that this isn’t going to impact oil.
U.S. stocks are a different story. Markets closed sharply lower Monday amid geopolitical tensions between Iran and Israel. The S&P 500 had its biggest one-day percentage drop since Jan. 31.
Markets were up initially, but gains faded over concerns the conflict between Israel and Iran could continue. With that, Treasury yields jumped, with the benchmark 10-year U.S. Treasury note hitting its highest level since November.
Stocks have struggled recently, with the S&P 500 suffering two straight weeks of declines and its biggest weekly percentage drop since October last week. Investors have pushed back expectations for the timing and size of any rate cuts from the Federal Reserve.
