The Dow and overall US stock market bounced back on Monday, as investors diverted their attention from risks associated with both the US-China trade war and what many fear could develop into an actual war between the US and Iran.
Meanwhile, a UBS analyst warns that the global economy is “one step away” from a brutal recession that could ignite a stock market crash.
Dow Creeps Toward 27,000
All of Wall Street’s major indices inched toward moderate gains during the morning session. Shortly after the opening bell, the Dow Jones Industrial Average had gained 56.81 points or 0.21%; the DJIA last traded at 26,775.94.
The S&P 500 climbed 3.77 points or 0.13% to 2,953.65. Nine of 11 primary sectors reported gains, with Financials and Health slipping into the red.
The Nasdaq rose 15.16 points or 0.19% to 8,046.87.
Trump Threatens More Sanctions, Iran Calls His Bluff
Stocks traded higher even as the Trump administration prepared to levy new sanctions on Iran, in lieu of launching planned air strikes against the Islamic Republic for shooting down a US Navy drone last week.
“We’ve done very massive sanctions. We’re increasing the sanctions now,” Trump told NBC over the weekend.
An emboldened Iran dismissed Trump’s sanction threats as “propaganda,” and it seems like Wall Street also intends to ignore the simmering conflict’s market fallout.