Stock market: Dow, S&P 500 recover after a rough start as investors worry about Iran tensions
Stocks are off to a bumpy start this year following a strong 2019.
Global markets have faltered in recent days as tensions between Iran and the U.S. escalated, threatening conflict in the oil-rich Middle East and spurring investors to scoop up safe-haven assets like gold and government bonds.
That has put the brakes on a record run for U.S. stocks after they ended 2019 with their best annual performance in six years.
The recent volatility came after a U.S. airstrike killed a top Iranian general in Iraq last week. On Sunday, President Donald Trump threatened to hit Iraq with sanctions after its parliament passed a resolution to expel U.S. troops. He said the U.S. was prepared to hit dozens of Iranian assets if Tehran retaliates against America.
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On Monday, the Standard & Poor’s 500 edged up 0.4% to close at 3,246.28 to start the week. That followed its largest decline in a month on Friday, snapping a five-week winning streak. The index remains within 1% of its record.
The Dow Jones Industrial Average rose 68.50 points to end at 28,703.38, reducing its losses after an initial 200-point drop. The Nasdaq Composite rose 0.6% to 9.071.46.
Energy and big internet companies led gains Monday, offsetting losses in the industrial and financial sectors.
Oil prices jumped on the possibility that tensions in the Middle East could disrupt oil supplies in the region. U.S. crude rose 22 cents to settle at $63.27 per barrel. Brent crude, the international benchmark, climbed 31 cents to $68.91 a barrel.
Gold rose $17 to settle at $1,566.20 per ounce, its highest level in nearly seven years.
The yield on the 10-year Treasury climbed to 1.81% from 1.78% late Friday.