Oil Prices Slip Below $90 as Stocks Rise Amid Iran Tensions
Stocks rose on Thursday as oil prices dropped below $90 per barrel, despite concerns about the Iran war. The commercial crude oil inventories posted their largest weekly gain since January 2023, and the Organization of the Petroleum Exporting Countries lowered its world oil demand growth forecast for 2026.
Investors scaled back their bets on a September rate hike by the Federal Reserve, pricing in a 65% probability of keeping rates unchanged next month. The S&P index hit an all-time high last week, and technology stocks were boosted by upbeat earnings from AI infrastructure firms.
Economist Mohit Kumar at Jefferies said that earnings season for AI infrastructure names has been strong, with no signs of slowdown in capital expenditure. He also noted that the background of high cash levels in the system and the Fed not hiking rates should continue to support risky assets.