Investment Week at a Glance
Stocks finished lower for the week. The Dow Jones Industrial Average fell 1.3%, the S&P 500 was down 0.4%, and the NASDAQ fell 0.6%. Foreign stocks (MSCI EAFE) were up, rising 1.0%. Bond prices were up for the week, with the 10-year U.S. Treasury ending the week at 4.41%. (Data source: Wall Street Journal)
Geopolitical Tensions Rise in Middle East
Late last week Israel carried out targeted attacks against Iran in an effort to stop their nuclear weapon development. Iran has since retaliated and continued to send missiles into Israel over the weekend. Markets moved lower on Friday as tensions rose and oil prices increased by nearly 14% last week. Overall, there was little movement and many were surprised oil prices hadn’t moved even higher as oil prices were at their lowest point since 2021 entering last week. Despite the recent spike higher, oil prices remain lower than when the year started. We will hope for peace in the near future and will also pay attention to how this affects markets going forward.
Strong Economic Data for First Half of 2025
Recession worries have continued to go down as economic data has continued to stay strong. Despite a negative Q1 GDP due to imports, Q2 GDP is expected to come in at 3.8% according to the Federal Reserve Bank of Atlanta’s GDPNOW tracker. Unemployment is 4.2% which is well below the historical average and near full employment. Inflation data has also been good as the current CPI is 2.4%, nearing the Fed’s 2% target rate. While all this can change, markets have taken this as a positive as the economy continued to be strong.
Oracle Stock Has Best Week Since 2001
Oracle’s stock rose 24% last week, its best week since 2001. This came after the company reported momentum in its cloud business and guidance was much better than expected. The stock price hit an all-time high on Friday and now has a market cap of over $600 billion. The company is up over 50% in the past 12 months as the AI business has taken off. Some of the company’s biggest clients are, Meta, OpenAI & Elon Musk’s xAI. Investors will hope the AI boom can continue on for Oracle and the other tech giants. (CNBC)
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Quiz:
What was the all-time high price of Crude Oil? (Scroll Down for Answer)
- $119.87
- $133.48
- $147.27
- $161.93
Answer:
3. $147.27. The all-time high came at $147.27 in July of 2008. Current prices are right about at half of what the all-time high was.
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