Crude Oil Futures Surge on US-Iran Tensions
US crude oil futures continued to rise on Wednesday after the US military destroyed five Iranian tankers, sending shockwaves through the energy market. The Iranian regime has a history of manipulating energy prices ahead of key events, and with the mid-term elections just 60 days away, it's likely they'll try to keep gas prices high.
The destruction of these tankers is expected to have a positive impact on energy stocks, particularly Cenovus Energy (CVE) and BP plc (BP), which are likely to see a boost in the coming days. Meanwhile, chip stocks like AMD (AMD) and Intel (INTC) are still trading at a premium, but their forward P/E suggests value.
Nvidia (NVDA) stock has been on an uptrend since late July, despite falling 2% yesterday, and storage suppliers Seagate (STX), Western Digital (WDC), and SanDisk (SNDK) are expected to build on Tuesday's strength. In the server market, investors prefer Dell Technologies (DELL) over HP Inc. (HPQ).
On the other hand, consumer discretionary stocks like Dollar General (DG), Dollar Store (DLTR), Costco (COST), Walmart (WMT), and TJX Companies (TJX) are facing significant selling pressure due to their downtrend risks.