NEW YORK, NY. -- Investors must be asking if this is all real: stocks rising and oil prices falling almost simultaneously as the risk that the U.S. would attack Syria appeared to fade.
The Standard & Poor's 500 index had its sixth straight gain yesterday, the longest winning streak since July. But the market has improved only recently as stocks set new highs in early August. But worries over Syria have pushed them lower since then. Even though Syria isn't a big oil producer, the possibility of a wider conflict in the region drove oil prices to two-year highs last week.
On Tuesday, investors were relieved that Syria accepted a proposal to put its chemical weapons under international control for dismantling, although much remains to be done to see that to fruition. The possibility that the crisis between the U.S. and Syria might be solved peacefully was a factor in the stock market's gain on Monday, too.