Stocks Rise Anew as Crude Oil Trims Its Advance

Jack Janasiewicz, Lead Portfolio Strategist at Natixis, gives his market outlook amid an easing oil rally.

A renewed wave of stock buyers lifted the market after a rally in oil eased, bringing a degree of relief to traders worried about the impacts of energy costs on inflation and the economy as the war in Iran drags on.

More than 400 shares in the S&P 500 advanced, with the index rising for a second straight session. US oil pared most of an earlier surge to trade around $95. US airlines jumped as some executives cited strong bookings as travelers rush to lock in fares ahead a potential rise in fuel costs. Qualcomm Inc. gained on plans to buy back $20 billion worth of shares and boost its dividend.

Bond yields dropped alongside the dollar on the eve of the Federal Reserve decision. With officials widely expected to hold interest rates steady on Wednesday, attention shifts how they may respond if the fallout from war in the Middle East pulls their policy goals in opposite directions.

President Donald Trump reiterated his appeals for other nations to help secure the Strait of Hormuz, saying Iran was nearly obliterated even as the war keeps roiling oil markets and global shipping. Israel said it killed Iran’s security chief, Ali Larijani, in an overnight strike, intensifying a region-wide war that shows no sign of abating.

The development came after Iran set a massive natural gas field in the United Arab Emirates ablaze overnight as it steps up attacks on key energy sites.

“There is a growing sense that markets are trying to look through the current tensions,” said Fawad Razaqzada at Forex.com. “A credible multinational effort would likely push oil lower and equities higher — but the best outcome would be to end the war and soon.” - A renewed wave of stock buying lifted the market after a rally in oil eased, bringing a degree of relief to traders worried about the impacts of energy costs on inflation and the economy as the war in Iran drags on.

Over 400 shares in the S&P 500 rose, with the index climbing for a second straight session. US oil pared an earlier surge to trade around $95. Airlines jumped after some executives cited strong bookings as travelers rush to lock in fares ahead a potential rise in fuel costs. Qualcomm Inc. gained on plans to buy back $20 billion in shares and boost its dividend. Bond yields dropped alongside the dollar on the eve of the Federal Reserve decision. With officials widely expected to hold interest rates steady on Wednesday, attention shifts how they may respond if the fallout from war in the Middle East pulls their policy goals in opposite directions.

President Donald Trump, who earlier this week reiterated his appeals for other nations to help secure the Strait of Hormuz, said Iran was nearly obliterated. The US has been informed by “most” of its NATO allies that they don’t want to get involved in Iran, he said in a social-media post.

“Because of the fact that we have had such Military Success, we no longer ‘need,’ or desire, the NATO Countries’ assistance — WE NEVER DID!” Trump noted.

Israel said it killed Iran’s security chief, Ali Larijani, in an overnight strike. The development came after Iran set a massive natural gas field in the United Arab Emirates ablaze overnight as it steps up attacks on key energy sites.

“There is a growing sense that markets are trying to look through the current tensions,” said Fawad Razaqzada at Forex.com. “A credible multinational effort would likely push oil lower and equities higher — but the best outcome would be to end the war and soon.”

The stock market is trying to find a bottom amid this geopolitical-driven pullback, according to Rick Gardner at RGA Investments. While he says the conflict could go on for some time, that doesn’t mean the stock market would follow suit.

“Stocks tend to move ahead of various events, like wars, well before they are over,” Gardner noted. “Valuations in stocks remain attractive, creating a potentially attractive entry point for invest

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