New york: US stock markets ended higher Monday, rebounding from major losses after President Donald Trump said that the war with Iran "is very complete, pretty much." The Dow Jones Industrial Average rose 0.5%, or 239.25 points, to 47,740.8. The Nasdaq gained 1.38%, or 308.27 points, to 22,695.94, while the S and P 500 added 0.83%, or 55.97 points, to reach 6,795.99. The Volatility Index (VIX), also known as the "fear index," fell 13.53% to 25.5.
According to Anadolu Agency, markets rebounded after Trump told CBS News that the Iran war "is very complete, pretty much." He explained, "(Iran has) no navy, no communications, they've got no air force. Their missiles are down to a scatter. Their drones are being blown up all over the place, including their manufacturing of drones." Trump added that the US is 'very far' ahead of his initial four- to five-week estimated time frame for the war. Regarding the Strait of Hormuz, Trump mentioned that ships are moving through now but also stated that he is 'thinking about taking it over.'
Earlier on Monday, Trump said he has a plan to address surging oil prices driven by the war but did not provide details. "I have a plan for everything. You'll be very happy," he told the New York Post. Furthermore, G7 finance ministers discussed the impact of the Iran conflict during a virtual meeting on Monday and signaled readiness to stabilize global energy markets. "We stand ready to take necessary measures, including to support the global supply of energy such as stockpile release," they said in a joint statement.
As a result of these developments, Brent crude oil prices fell sharply, dropping over 4% to around $87 per barrel, down from $119 overnight. The US benchmark West Texas Intermediate (WTI) crude also fell 7.9% to $83.8 per barrel after climbing as high as $119 overnight.
On the data side, US consumers' short-term inflation expectations fell to 3% in February, according to the Federal Reserve Bank of New York's Survey of Consumer Expectations released on Monday. Consumers' medium- and long-term inflation expectations remained unchanged at 3%. During the same period, the median expected earnings growth fell by 0.2 percentage points to 2.5%.