Major benchmarks were taking a breather from their upward September march Monday, after a weekend attack on key Saudi oil production facilities sent crude prices soaring and sowed uncertainty in global financial markets.
As the chart above shows, the S&P 500 has, on average, risen 10.2% in the six months following one-day, crude-oil price spikes of 10% or more, nearly 4 percentage points higher than the 6.3% average growth of the S&P 500 during other periods. The Dow has risen 8.7% six months after a 10% crude surge, versus a typical 6.1% rise, while the Nasdaq has seen a 15.5% rise compared with a typical 8.2% ascent.
While some companies and households could bear the cost of higher oil prices, Stovall said, the increasingly large American energy sector will benefit, potentially leading to higher profits, hiring and investment for U.S. energy companies. Another foreboding example is June 20, 1990, when the price of crude oil rose 10.7% in the months leading up to the Iraqi invasion of Kuwait. As that conflict grew over the next year, there were more than two dozen instances when crude oil prices rose more than 5% during a single trading day. Six months after the initial price spike, the S&P 500 was 8% lower.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Malaysia Malaysia Latest News, Malaysia Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Tech stocks face a 10% drop in the near-term, warns investor who once ran the world’s biggest technology fundWhile investors sift through the aftermath of the weekend attack that disrupted Saudi Arabia’s crude output, the Wall Street veteran who ran the world’s...
Source: MarketWatch - 🏆 3. / 97 Read more »
Saudi, Gulf stocks fall after attack on Aramco oil plantsSaudi stocks plunged 2.3% as the market opened on Sunday, after attacks ... Very sad for Saudi stocks. Great news Oh very sad.
Source: Reuters - 🏆 2. / 97 Read more »
Resilient U.S. Growth Propels Stocks as Trade Fears EaseInvestors are piling back into stocks and unwinding massive bets on haven assets, illustrating renewed faith that a resilient U.S. consumer can continue powering economic growth. It's ok Saudi Arabia & gulf countries are always willing to help ....
Source: WSJ - 🏆 98. / 63 Read more »
Saudi, Gulf stocks fall after attacks on Aramco oil plantsSaudi stocks fell sharply on Sunday, after attacks on two plants at the heart of... Real courage adjust the nerves. يشتوا يتوهونا:الطائرات المسيرة التي قصفت بقيق وخريص بالسعوديه جأت من ايران ؛لاالعراق لاالبحرين !!؟مايهمنا إنها حققت هدفها؛والاهم ان الاستهداف هو رد للعدوان السعودي الامريكي على اليمن المستمرمنذ خمس سنوات اليمن_شفت_الدبل_قيق What is your intention about not using the complete name of “Persian Gulf”
Source: Reuters - 🏆 2. / 97 Read more »
Oil stocks in Asia Pacific surge as drone attacks disrupt Saudi productionDrone attacks over the weekend knocked out about half of Saudi Arabia's daily crude production, causing oil prices to shoot up. Big deal Saudi Aribea is a nice country , they do their best to bring oil to all the world easily with a fair price . Our mission at is to build the social media platform that ends fake news
Source: CNBC - 🏆 12. / 72 Read more »
European stocks seen lower on geopolitical tensions and weak Chinese dataEuropean stocks were expected to open lower Monday morning as investors digest an escalation of tensions in the Middle East following an attack on Saudi oil. Well, Brace for a down-turn Trump on Monday into Friday! Thanks Jared for all your work in the Middle East Is Burj Khalifa public? Its stock & others related to it (hotels, etc) should also be declining. BuY tHe Dip Green by close! Hurry!
Source: CNBC - 🏆 12. / 72 Read more »