Source: Fortune
Summary
The S&P 500 reached an all-time high on Friday after Iran announced that the Strait of Hormuz is open again for commercial tankers carrying crude from the Persian Gulf. Oil prices dropped, with U.S. crude falling 9.4% to $82.59 per barrel and Brent crude falling 9.1% to $90.38 per barrel. The Dow Jones Industrial Average surged 868 points, and the Nasdaq composite climbed 1.5%. Companies with big fuel bills, such as United Airlines and Royal Caribbean Group, saw significant gains.
Our Reading
The numbers tell one story.
The market’s optimism is fragile, with prices swinging wildly in response to news about the war. Companies with big fuel bills are among the biggest gainers, while housing and auto-related companies also see relief from the drop in oil prices. The Federal Reserve may consider cutting interest rates again if oil prices stay low. Reed Hastings, cofounder and chairman of Netflix, will step down from its board of directors in June.
The announcement sounds familiar.
The market is waiting for the next shoe to drop.
Author: Evan Null
