US Stocks Flat, Oil Drop Eases Market Pressure
Wall Street moved relatively stable in trading on Friday (July 24th) after oil prices retreated from their previous surge. The S&P 500 was virtually unchanged, the Nasdaq 100 fell 0.4%, while the Dow Jones Industrial Average edged up 0.1%.
The market began to see some relief after Brent crude fell back below US$100 per barrel. This decline helped ease pressure on stocks and halted the sell-off in the US bond market.
However, the S&P 500 remains on track for its second consecutive weekly decline. Concerns about the conflict between the United States and Iran and the significant investment in the artificial intelligence sector continue to weigh on investor sentiment.
Energy supply risks remain high following Houthi attacks on ships in the Red Sea. However, millions of barrels of Saudi oil can still be shipped via the Red Sea coast as an alternative route to avoid the Strait of Hormuz.
The widening conflict has fueled concerns that energy prices could keep inflation high. This situation has reinforced expectations that central banks will need to maintain high interest rates for longer.
As long as oil prices remain below US$100, pressure on Wall Street has the potential to ease. However, geopolitical uncertainty and inflation concerns could still limit stock index gains in the near term. (arl)
Source: Newsmaker.id
