Technology and energy companies are in the focus of investors
Pavel Bandilov with weekly financial and political analysis
Over the past week, other than the daily portion of financial information, investors have had to swallow another geopolitical clash. Trump pulled the US out of the nuclear agreement with Iran, causing turmoil in the markets.
The US president had given Britain, France and Germany until May 12th to correct what he considered to be the weak points of the agreement. It concerns the non-remembrance of Iran’s ballistic missile programme, the conditions under which inspectors visit suspicious sites in the Islamic Republic, and clauses under which certain conditions expire.
Trump originally planned to announce the US decision on the May 12th agreement. In the end, however, this happened now.
Last week in the US, data on production and consumer prices showed very low growth in April, which reduces concerns about a recent increase in interest rates. On the other hand, the aid applications submitted are 211 thousand, which is extremely low in historical terms. All this led to growth of the main indices by more than 2%. Energy stocks rose 3.8% on Monday, entering Friday’s session, reporting the biggest growth of all 11 sectors in the S&P 500. The sector was boosted by rising oil prices, which jumped after President Donald Trump pulled the US from the Iranian nuclear deal. Technology stocks also contributed to weekly profits, rising by 3.7%. Leading in the largest sector of S&P 500 in market capitalization are Facebook and Alphabet, which rose by more than 5%.
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