S & P500 close to the record. Oil and gold downwards

The de-escalation of the Israeli-Iranian war pleased Wall Street investors. The stock indexes went up, as a result of which the S&PC was close to the February record. Crude oil has been highly overestimated. Gold was also tightly cheaper.

It was a clearly upward session. The S & P500 index after an increase of 1.11% reached a height of 6092.18 points, determining the highest closure exchange rate for over four months. Until February, the record of all time (6145.79 points) is already short of less than 1%.
Nasdaq Composite went up by 1.43%, finishing with a score of 19,912.53 points. Dow Jones increased by 1.19% and reached 43,089.02 points.

The catalyst for Tuesday's increases were hopes for the end of the Israeli-Iranian war. US President Donald Trump announced on his Social Social social networking site that the suspension of weapons between Iran and Israel began to apply. And although later there were reports of a break of the truce by both sides of the conflict, the markets decided that Trump would bring to the order of both. For this purpose, the host of the White House had to use strong pressure on the Israeli authorities, who did not hurry to suspend armed operations.

– Over the last generation, the market has learned that if any geopolitical tensions in the Middle East have an impact on American financial markets, this is a short -term impact – commented Scott Ladner, the main managing in Horizon in Charlotte quoted by Reuters.

Instead, the oil market reacted spectacularly, which in two days got cheaper from nearly USD 80 to less than USD 67 per barrel (Brent). This pulled the actions of large oil concerns down. The Exxon course dropped by 3%and Chevrona by over 2%. Interestingly, Tesla's quotations, which had previously developed with the values ​​of oil companies, also dropped by 2.4%. Perhaps investors assume that cheaper gas will discourage customers from buying cars for a battery.

Green of growth on Tuesday covered virtually the entire American stock market, except for the already mentioned oil companies and actions of weapon producers. The Lockheed Martin course dropped by 2.3%and RTX Corp by 2.6%. Technology companies, headed by Oracle (4%), Broadcom (3.9%) and Nvidia (2.6%) and Amazon (2.1%). Solidly plus were the quotations of the largest banks and companies from the finance sector.

The latter may be favored by the federal reserve policy. President Powell, testifying before the Commission of the House of Representatives, once again repeated that the Fed does not have to hurry with interest rate reduction. The market at less than 20% values ​​the chances of reduction of foot at the July FOMC meeting – according to the Fedwatch Tool calculations. For 85% sure at least 25-point foot reduction in September.

On the macroeconomic episode, he disappointed a consumer trust index by Conference Board. This indicator in June fell to 93 points compared to 98.4 points. in May. Analysts expected its improvement to 99.5 points. The disappointment is therefore very large and it took place after a definite improvement of the mood of Americans from May. The respondents worked primarily to the labor market – less than 30% of respondents decided that work was easily available. Four years ago, almost 40% of respondents claimed.

At almost 2% down, gold ratings went down, which lost some splendor after calming the situation in the Middle East. Yellow metal has been in a side trend for two months, which may be a prelude to some more serious correction. For now, gold is recorded nearly 27% higher than at the beginning of the year.

KK

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