Tech Stocks Quiet as Oil Prices Stabilize and Global Debt Reaches Record High
The oil price has been relatively stable lately, despite some fluctuations in recent days. According to Dennis Elam, an associate professor at Texas A&M San Antonio and a 1966 graduate of Andrews High School, who blogs at www.professorelam.blogspot.com, the recent high of $90 and low of $70 would average out to around $80 for oil prices.
However, in the last five trading days, West Texas Intermediate (WTIC) has fallen from $86 to $80 and then rebounded back to $82.59 as Elam wrote on Friday. This suggests that doomsday predictions of $150 oil have not come to pass, and instead, there have been other ways to get oil out of the Middle East than through the Hormuz Strait.
The major stock indexes have also been relatively quiet, with only a few notable exceptions. The Magnificent Seven tech stocks have not made higher highs so far, but Nvidia (NVDA) announced better-than-expected earnings, sending its stock up and resulting in a $442 billion dollar stock gain. Palantir (PLTR) did make a new high, but it seems to be the sole new high among this most reported-about chip sector.
The SOX semiconductor sector has moved sideways over the last two months, remaining below its June high of 14,500 at around 12,000. This is a concerning trend for those who believe in the dominance of tech stocks.