Bonds & Stocks
Stocks and bonds started the week on a positive note as hopes for diplomatic efforts to end the Iran war drove oil prices lower, easing inflation anxiety. The S&P 500 rose 0.6%. The yield on 10-year Treasuries declined four basis points to 4.96%.
Economy
Federal Reserve Bank of Chicago President Austan Goolsbee warned the central bank cannot ignore repeated and persistent supply shocks, and must respond in a way that may cause economic hardship. “Supply shocks have come more frequently, hit harder and lasted longer,” Goolsbee said.
World
US and Chinese officials offered upbeat assessments of their talks on artificial intelligence, trade and investment, signaling a mutual desire to steady ties ahead of this week’s summit between leaders Donald Trump and Xi Jinping.