Stock markets rise as oil prices plunge ahead of Fed meeting
Hormuz Strait negotiations and Fed decision stir markets.
1Market rally
Easing tensions between the U.S. and Iran, along with the potential reopening of the Strait of Hormuz, created a positive atmosphere in global markets. Dow Jones, S&P 500, and Nasdaq futures saw significant gains. South Korea's Kospi index also rose by 1.1%.
2Sharp drop in oil prices
Positive progress in Hormuz Strait negotiations pushed oil prices lower. U.S. crude fell 5.44% to $84.45 per barrel, while Brent crude dropped 5.25% to $91.70. This could provide the Fed with some breathing room in its inflation fight.
3Fed meeting expectations
Wall Street is closely watching this week's Fed meeting. A debate is expected between raising interest rates or keeping them steady to combat inflation. The decision could also impact AI stocks, which have recently weakened.
4Tech giants' earnings reports
Earnings reports from Microsoft and Meta on Wednesday, followed by Apple and Amazon on Thursday, could create market volatility. Alphabet surpassed expectations last week but reported negative cash flow due to high spending.
5Developments in the semiconductor sector
Chip giants like SK Hynix and Samsung signed new deals to expand in the AI infrastructure market. SK Hynix will supply semiconductors to AI developer Anthropic, while Samsung secured a $200 billion chip manufacturing deal with Broadcom.
6Impact of geopolitical tensions on markets
Alongside U.S.-Iran negotiations, Ukraine's attack on an Iranian support ship in the Caspian Sea has heightened regional tensions. These developments could lead to fluctuations in oil markets and shifts in investor risk perception.
Original article: Fortune — Petrol fiyatlarındaki düşüş ve Fed toplantısı öncesi borsalarda yükseliş