Log in to today’s North American session Market wrap for January 14
Today’s session unleashed a wave of panic across global markets, driven by a combination of factors: the weekend’s attack on the Fed, inflation data that—while not alarming—remains hot enough to delay rate cuts, and most importantly, the growing probability of an attack on Iran.
Regarding the latter, such fears had built a strong premium into Oil prices despite today’s release of very high US inventories: WTI surged from $55.80 to highs of $62 in about a week, a +10% move.
However, things calmed significantly when President Trump appeared, stating that the “killing in Iran is stopping,” which would likely discourage US intervention—at least, that is what the market is assuming.
Promptly after the comments, released about an hour before the close, stocks were relieved of their intense pressure.
The Nasdaq, for example, rallied from down 1.70% at its lows to close the day down “only” 1%. The Dow Jones recovered to finish nearly unchanged.
Oil, on the other hand, saw a catastrophic drop as the premium eased, falling from $62 to $60 to close down on the session.
