Financial Markets Wall Street

Another climb for oil prices shook stock markets, as hopes collapsed for a possible cut to interest rates this year by the Federal Reserve. The S&P 500 fell 1.5% Friday to close its fourth straight losing week. The Dow Jones Industrial Average dropped 1%, and the Nasdaq composite sank 2%. The losses deepened after oil prices erased an early loss and accelerated in the afternoon. Stocks fell by similar amounts across Europe. Treasury yields jumped as traders speculated the Fed won’t be able to cut rates this year because of how high oil prices have climbed.

A cautious relief swept through financial markets after President Donald Trump said the United States has talked with Iran about a possible end to their war. Oil prices eased Monday, and stock prices jumped on Wall Street following severe losses taken elsewhere in the world before Trump’s announcement. The S&P 500 climbed 1.1% for its best day since the war began. The Dow Jones Industrial Average rose 1.4%, and the Nasdaq composite rallied 1.4%. Brent crude fell back below $100 per barrel. But the moves were even sharper in the morning, before Iranian officials denied that talks were underway with the United States.

U.S. stock indexes slipped and gave back some of their rallies from the day before, while oil prices got back to rising. The S&P 500 fell 0.4% Tuesday after yo-yoing through the day. The Dow Jones Industrial Average dipped 0.2%, and the Nasdaq composite sank 0.8%. Oil prices clawed back some of their steep 10% drops from the prior day, while Treasury yields climbed in the bond market. Markets regressed as attacks continued in the war with Iran, a day after President Donald Trump raised hopes a potential end to fighting could come soon.