Airlines Rally, Apple Declines, and Federal Intervention: Market Recap

The U.S. equity markets overcame early losses on Monday to close on a higher note across the board, despite looming concerns about the sequester.

At the close: DJIA: +0.27%, S&P 500: +0.46%, NASDAQ: +0.39%.

On the commodities front, WTI crude oil (NYSEARCA:USO) failed to recover alongside equities, and edged lower to close at $90.46 per barrel. Gold (NYSEARCA:GLD) futures for April delivery, the most active contract, edged 10 cents higher to settle at $1,572.40 per ounce, while silver (NYSEARCA:SLV) futures for May traded flat at $28.50.

The two precious metals remain stuck in consolidation mode, despite central banks sticking to their loose monetary policies. The incoming officials at the Bank of Japan are reiterating calls for the central bank to fight deflation more.

Kikuo Iwata, one of the nominees for a governor post, claims, “It’s monetary policy alone that will be able to alter deflationary expectations. Firms won’t spend their money as they are awash with cash on hand as long as deflation persists. But firms will start using their cash when inflation expectations emerge.”

Meanwhile, governor nominee Haruhiko Kuroda says, “If I were appointed as governor, I would do everything possible to get out of deflation.”