The unexpected developments in the attack on Iran are souring stock markets further. The S&P 500 (IVV) will open a few points higher this morning. However, the index would need to gain 0.94% to break-even. If it fails to do so, it will end lower for the fourth straight week.
Israeli Prime Minister Benjamin Netanyahu commented that the country was helping the U.S. on intel and “other means.” The two countries are working on opening the Strait of Hormuz. Neither the country nor the stock market expected that Iran had the drone and military equipment available to attack shippers in the last few weeks.
Netanyahu said that Iran lost its ability to enrich uranium.
Investors should watch WTI crude futures closely in reaction to those comments. Last night, WTI crude pulled back to $92.90, down by 2.96%. It traded at $98.71 last Friday, March 13.
Energy firms that broke out after the oil crisis are stocks to hold. Canadian Natural Resources (CNQ) closed at $50.55. Devon Energy (DVN), ConocoPhillips (COP), Exxon Mobil (XOM), and Occidental Petroleum (OXY) are top performing stocks this year.
The more energy rises, the more pressure it has on inflation over the medium term. This lowers the odds of the Fed lowering rates. In response, gold (GLD) prices fell. GLD stock lost 4.12%, while silver (SLV) dropped by 4.4% on Thursday.
