(CercleFinance.com) – The New York Stock Exchange is expected on a mixed note Monday morning, with investors favoring caution despite a surge in oil prices which should favor energy stocks.
Half an hour before the opening, the orientation of futures contracts on the main New York indices signals a mixed start to the session after the sharp rise of the past week.
The Dow Jones, S&P 500 and Nasdaq all climbed more than 3% last week, marking a third straight week of gains.
But Wall Street should experience a quieter start to the week, with market participants seemingly wanting to take a break at the start of a week that will be cut short by the Easter holiday.
Friday’s publication of job creation statistics for March will show whether the economy remains robust enough to justify further rate hikes from the Fed.
In the immediate future, it is energy stocks that should drive the market in the wake of the jump in black gold following the agreement on the reduction of crude production concluded by OPEC+.
The effect on the price of a barrel was spectacular and immediate, with American light crude oil (West Texas Intermediate, WTI) climbing almost 6% above 80 dollars, the highest in a month.
The WTI still shows a surge of more than 23% in ten days.
After the recovery that took place over the past two weeks, the oil market is thus continuing to rebound, benefiting from hopes of good economic performance and more structural elements.
“Historically, energy has always been considered a cyclical sector,” recalls Steve Smith, manager at Invesco.
“Commodity prices have been volatile because due to the constant growth in supply, the market has found itself in a situation of oversupply each time demand has fallen,” he underlines.
“But we think that has changed,” concludes the specialist.
According to him, the sector has entered a period of insufficient structural supply with the climate transition, a change that makes the energy sector attractive again.
Copyright (c) 2023 CercleFinance.com. All rights reserved.