Oil falls with US-Iran negotiation signal, and S&P 500 closes lower
Iran signals openness to negotiations after eight months of war, oil prices decline and the American market remains sensitive to balance sheets and elections in the USA.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM MONEY TIMES · 3 MIN
The S&P 500 closed lower on Monday (2), according to Money Times, even with falling oil and the prospect of a possible peace agreement between the US and Iran.
The movement of the commodity was the main topic of the session. According to Times Brasil, Brent fell 4.5%, to US$ 108.38, on Monday morning, while WTI fell more than 4%, to US$ 99.31. Money Times reports that the optimism came after Iran signaled openness to negotiations after eight months of war in the Middle East. InfoMoney reports that dialogue between the US and Iran seeks to end the conflict and reopen the Strait of Hormuz.
In interest, long-term Treasury yields fell, according to Money Times. Times Brasil registered the ten-year paper at 4.911% and the VIX at 18.95 points. In Europe, the stock markets closed mostly higher, according to InfoMoney, with the Ibex 35 rising 1.66% and the CAC 40 advancing 0.98%. On the same day, the European market weighed comments from ECB officials about interest rates.
In the corporate field, technology was the point of attention. According to Money Times, Apple fell before the quarterly earnings, with the focus on rising memory chip costs. Amazon and Tesla rose, also according to Money Times. Times Brasil summarized the scenario with the headline that technology weighed heavily and that October ended in the red.
Before the opening, New York futures pointed to an increase: S&P 500 with 0.5%, Nasdaq-100 with 0.8% and Dow Jones with a gain of 310 points (0.6%), according to Times Brasil. The previous week had seen losses in the main indices, and the agenda includes balance sheets, employment data and the US legislative elections, scheduled for Tuesday, according to Money Times.
What is at stake is whether the decline in oil prices is sustained. If the trading signal advances, the pressure on energy costs may ease, which would change the reading for interest rates. If the dialogue does not move forward, the commodity tends to return to the center of investment decisions.
What changes for the investor
For those who follow the stock market, interest rates and the dollar, the session shows how the market remains sensitive to geopolitical news and the price of oil. Apple's balance sheet, the evolution of chip costs and the result of the US legislative elections are factors that could change the business mood in the coming days. This article describes the scenario and does not provide a purchase or sale recommendation, nor price projections.
Automatically translated from Portuguese.
