U.S. oil prices extended gains Monday, following the biggest weekly advance in more than two years, as President Donald Trump threatened further economic sanctions on Iran following the downing of a an unmanned military drone in the Gulf last Thursday.
The latest small business optimism index reached its highest point in seven months. That could be good news for the Russell 2000.
Options enable traders to express their opinions in market pricing without the stress and risk of buying or selling futures contracts outright.
President Donald Trump said Friday that the U.S. was "cocked and loaded" in preparation for a possible retaliation on Iran, but added he cancelled an imminent airstrike after considering it "not proportionate" to the downing of an unmanned military drone earlier this week.
Global oil prices jumped to a three-week high Friday, extending the biggest weekly gain since February, amid escalating military tensions in the Gulf region and the threat of potential U.S. airstrikes on Iran.
Gold prices surged to a six year high Friday, capping its best weekly advance since 2016, as investors sought safety from falling global currencies, negative interest rates and the prospect of escalating military tensions in the Gulf region.
As investors once again anticipate a near-ZIRP environment, keep an eye on defense names and gold.
The market is cheering for rates to be cut, but forgets they are being cut on the back of global growth collapsing, which is negative for risk assets.
The Fed's monetary-policy committee voted to keep the benchmark U.S. interest rate at 2.25% to 2.5%, but warned of risks to the U.S. economy and dropped a pledge to remain 'patient' on future rate cuts.