Stocks closed mostly lower on July 8 after President Donald Trump signaled that the Iran ceasefire might be over.
The Dow Jones ended the day down nearly 600 points, losing just over 1% of its value. The S&P 500 lost 0.3%. The tech-heavy Nasdaq, which already has endured losses in recent weeks, eked out a gain of 0.2%.
Renewed Strikes Rattle Markets
Markets faltered following renewed military strikes between the United States and Iran, a development that prompted Trump to declare that the ceasefire in the Iran war is likely over.
“To me, I think it’s over. I don’t want to deal with them,” Trump said in Ankara, Turkey, where he was attending a NATO summit.
That news sent oil prices rising, because conflict in the Middle East tends to constrict supply.
Oil prices spiked to their highest levels in weeks. Brent crude oil, the global benchmark, jumped 6% to $74.50 per barrel.
Energy Stocks Rise, Consumer Goods Fall
Energy stocks rose on the day: Rising oil prices feed oil-company profits. But stocks fell for some consumer-goods companies, which could see their operations hampered by higher energy prices.
Fed Minutes Show Division on Rates
The stock market showed little reaction to the release of minutes from the June meeting of the Federal Reserve, a session that yielded no change in benchmark interest rates. The minutes, which shed light on the inner workings of the central bank, showed bankers divided on the future direction of interest rates.
The CME FedWatch forecasting tool shows that most traders expect higher interest rates by year’s end.
Contributing: Rachel Barber, USA TODAY
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