The S&P 500 Rises on Iran and Fed Statement

The S&P 500 Rises on Iran and Fed Statement
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.

How to Succeed in the World of Financial Trading

 

Powercash21 Ltd.

CM Trading is the Brand name of Global Capital Markets Trading 

The website is operated by CMT Processing Limited. 

 

HIGH RISK WARNING:
Trading Foreign Exchange (Forex) and Contracts for Differences (CFD’s) is highly speculative, carries a high level of risk and may not be suitable for all investors. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin.

© Copyright 2015 - CM Trading - All rights reserved