Source: Fortune
Summary
US stocks fell on Tuesday after Iran announced that the Strait of Hormuz would remain closed until its conditions were met, causing oil prices to rise. The S&P 500 was down 0.3% as energy, utilities, and industrial stocks rose, while large-cap technology shares fell. Analysts are split on the near-term outlook for inflation and rates ahead of consumer and producer price data. Economists expect the US consumer price index to have risen 0.1% in July.
Our Reading
The numbers tell one story.
Iran’s Strait of Hormuz announcement pushed oil prices higher, and US stocks fell. Energy stocks extended gains, while large-cap technology shares were the biggest drag on the index. Analysts are split on the near-term outlook for inflation and rates. The recent rise in oil prices has markets pricing back a nearly 50% chance of a rate hike. The announcement sounds like a familiar phase: prices rise, stocks fall, and analysts debate the future. The strategy enters a familiar phase: watching oil prices, inflation, and interest rates.
Author: Evan Null
