US stocks are bouncing higher after a report that China is in talks with Iran to allow safe oil and gas passage through the Strait of Hormuz. The price of oil moved lower off of the news, and stocks have rallied off of lows.
The S&P index moved up from a low of 6771 or down -98.72 points, and currently trades at 6817 down -52.45 points. That still down 15 points or -0.76%.
The NASDAQ index moved up from a low of 22500 down -307 points, to the current level of 22678, down -130 points.
China may be getting something of a “get out of jail free” card in the current market environment. For Trump, the shift provides some relief as well, with oil prices pulling back and stocks bouncing higher, easing some of the pressure that had been building from rising energy costs. What’s notable, though, is where that relief is coming from. A slowdown in oil’s surge tied to developments involving China likely wasn’t the catalyst many expected. If anything, the idea that China-related developments would help cool oil and provide market relief probably wasn’t on many people’s radar.
