Chevron CorpOil prices fell over 5% on hopes for U.S.-Iran diplomacy, pressuring energy stocks like Chevron.
U.S. stocks climbed Monday as investors responded to signs of easing tensions between Washington and Tehran. The Dow Jones Industrial Average gained about 1.2%, while the S&P 500 and Nasdaq Composite each rose roughly 1%. Nine of the 11 S&P 500 sectors advanced, led by communication services, while energy stocks lagged as oil prices fell on hopes for progress in U.S.-Iran discussions. Reuters reported that Brent crude dropped more than 5% as investors assessed the possibility of renewed diplomacy. Treasury yields also moved lower, with the two-year yield slipping 1 basis point to 4.25%, the 10-year yield declining 2 basis points to 4.69%, and the 30-year yield falling 3 basis points to 5.23%. Economic data offered a mixed signal, as the final U.S. manufacturing PMI for July came in at 53.9, slightly above the preliminary 53.8 reading, while the report pointed to softer production and sales growth.
Chevron CorpOil prices fell over 5% on hopes for U.S.-Iran diplomacy, pressuring energy stocks like Chevron.
Treasury yields declined as investors sought safety amid geopolitical hopes, with the 10-year yield down 2 bps.
Two-year yield slipped 1 bp to 4.25% on easing tensions and lower rate expectations.
30-year yield fell 3 bps to 5.23% as bond prices rose on geopolitical hopes.