The S & P 500 reached its highest level on Thursday and finished the day at 2,954.18 points. Friday ended the index marginally down.
There was great excitement about whether the Dow Jones would be able to surpass the magic limit of 27,000 points. That did not happen, but the index was close to hitting its own record of October 3, 2018 at 26,828.39 points.
The main indexes ended the week as follows:
- Dow Jones falls 0.13 percent
- S & P 500 below 0.13%
- Nasdaq below 0.24 percent
Increase in the price of oil
North Sea oil (Brent Spot) rose 5% this week and is now at $ 65. The price increase should be seen in light of growing fears that a US attack on Iran could adversely affect the flow of oil of the Middle East, writes CNBC.
"Rising tensions between the US and Iran have evolved into a major factor behind rising oil prices," said analyst Jim Ritterbusch.
On Thursday, Iran reported that they had shot down an American drone, whom they thought had flown in Iranian airspace. The United States denied this and claimed that the drone was in international airspace.
On Friday, US President Donald Trump said he had a disrupted military attack on Iran to save Iranian life.
US light crude (WTI) rose more than 9% this week – the biggest weekly increase since December 2016.
Business conflict creates headaches
"The real world is much worse than the stock market suggests," Jim Cramer, a CNBC host, said on Friday.
None of the companies he spoke to expects a better second quarter than the first quarter. The reason is the trade conflict between the United States and China.
US companies in several markets are witnessing an increase in pressure due to the tariff increases introduced by the two countries, according to CNBC.
Cramer sees negative outlook despite strong stock market growth over the past week.
– I'd rather say that the stock market is wrong than the real economy.
There is great enthusiasm among investors at the meeting between the US Donald Trump and Chinese President Xi Jinping during the G20 meeting in Japan next week.