The S&P 500 Rises on Iran and Fed Statement

The US stock market (the S&P) rose by 2.4% last week to 2728 offering a decent buy trade for those tuned in to what moves the markets.

Oil prices rose to $70 last week on the back of the USA pulling out of the Iranian nuclear deal. With nearly 5% of the S&P index compromising of energy related stock this pushed the markets higher.

On Friday, St. Louis Federal Reserve Bank President James Bullard implied that no further interest rates hikes were necessary. He believes that interest rates have reached a level of “neutrality” in that they are no longer stimulating the economy.

Bullard is only one guy on the FED panel but his statement was enough to give the S&P further upward momentum.

Higher interest rates have a negative impact on the stock markets as investors will diversify into bank deposits or treasuries if higher returns are offered. Bullard basically insinuated that you would be better off staying in the markets than moving your money elsewhere.