The Dow Jones Index soared to a record high of 52,905 last week, up by 17.50% from its lowest point this year. The S&P 500 ended the week at 7,483, a few points below the all-time high of 7,620. This article explores some of the top catalysts that will move these indices this week.
Falling Crude Oil Prices and Impact on the Fed
US stocks may receive a boost from falling crude oil prices, with top benchmarks like Brent and the West Texas Intermediate (WTI) falling by 40% from their highest levels this year. The average gasoline price has moved from $4.5 earlier this year to $3.80.
The falling energy prices, coupled with the weak non-farm payrolls last week, have reduced the possibility of the Federal Reserve hiking interest rates. Odds of hikes have fallen to 48% on Polymarket and Kalshi.
There are concerns that the oil market is moving towards a glut, especially now that OPEC approved another supply increase.
