US Credit Markets Rally After Trump Says War Could End Soon (1)

US corporate debt markets shrugged off early weakness and rebounded after President Donald Trump signaled the Iran war could be ending soon.

The cost of insuring a basket of high-grade credits against default, using the Markit CDX North American Investment Grade Index, fell 3.42 basis points, the most since May, to 55.03 basis points on Monday. Earlier in the session, it climbed to its highest level since May, when markets were still adjusting to the Trump administration’s tariff regime.

The initial spike came after oil eclipsed $100 a barrel for the first time since 2022 and the threat ...