The S&P 500 hit a new all-time high last week, and positive inflation data has put September's expected Fed rate hike on hold. Rothschild upgraded AAPL to Buy with a $400 target while JPMorgan slashed YSS's price target in half to $17 from $38. Threatened U.S. naval blockades on Iranian ports drove Brent Crude to $89 and may keep oil prices in the $75 to $80 range near-term.
The most widely read finance newsletter on Substack isn't published by a bank, it's Doomberg, where 383,000+ readers get the energy and macro analysis the mainstream press misses. 24/7 Wall St. readers save 17% on their first year here. Futures are trading mixed as we head into the new trading week, after a rollercoaster last week that gave investors and traders a bit of everything, from surprising economic data to new all-time highs on two of the four major indices. When the final bell rang on Friday, three of the four indices finished modestly lower, with only the small-cap Russell 2000 closing higher, up 0.51% at 3,068.
The Nasdaq closed down 0.28% at 26,729, while the S&P 500, which printed a new all-time high last week, closed the session at 7,785, down 0.17% but up for the third straight week. The Dow Jones Industrials closed Friday at 53,732, down 0.20%. With Q2 earnings nearly done and inflation data trending in a positive direction, one thing is certain: the Fed-funds rate hike that looked like a done deal a week ago if the inflation data came in hot could be put on hold when Federal Reserve governors meet in September.
After a week that saw yields fall on positive inflation news, buyers took Friday off for a 3-day weekend, so sellers stepped in and yields soared across the Treasury curve. When the dust settled, yields rose across all maturities as traders cited strong economic data, the massive and rising national debt, and higher energy prices as reasons to sell. The 30-year bond closed at 5.26%, while the 10-year note last traded at 4.69%.
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The supply and delivery of crude oil was front and center on Friday, as the United States threatened to keep an indefinite naval blockade of Iranian ports and implement unprecedented economic isolation measures on Iran, heightening tensions in the Middle East and threatening global energy shipments. While the International Energy Agency said demand will fall over the next year, the current situation could likely keep the median price in the $75 to $80 range over the next year. Brent Crude closed the Friday session at $88.55, up 1.70%, while West Texas Intermediate closed at $82.40, up 1.42%.
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