The Dow Jones Industrial Average dropped more than 200 points, or 0.4%, after President Donald Trump threatened to bomb Oman if the U.S. ally interferes with Iran negotiations. Nike and Microsoft led the blue-chip index lower, while the S&P 500 pared its losses and the Nasdaq composite turned positive.
Dow Slides on Trump's Oman Threat
The Dow Jones Industrial Average fell more than 200 points, or 0.4%, Monday. According to Investor's Business Daily, President Trump said the U.S. would bomb Oman if the country "gets in the way" of U.S.-Iran negotiations, with their 60-day ceasefire expiring the same day. Inside the index, Nike dropped more than 3% and Microsoft slid over 2%, the biggest drags. But Caterpillar rose more than 2%, while Cisco Systems and Johnson & Johnson also outperformed.
S&P 500, Nasdaq Diverge From the Dow
The S&P 500 stayed off its lows but remained down 0.1%, as communication services and consumer staples led sectors lower while technology and energy fared best. The Nasdaq composite, though, reversed higher to gain 0.1%, trading above its short-term and major moving averages.
Oil Reverses, Yields Tick Up
West Texas Intermediate crude oil reversed lower to trade down slightly, near $82.40 per barrel, after earlier gains tied to the Oman threat. The 10-year Treasury yield rose 1 basis point to 4.7%. Bitcoin, meanwhile, climbed more than 1% to around $63,800 per token.
Minutes from the Federal Reserve's latest policy meeting are due Wednesday. At that meeting, the Fed held its benchmark interest rate steady in a 9-3 vote, with three dissenting members preferring a rate hike.
Source: Investor's Business Daily
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