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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
After a period of declines, the Nasdaq is set to recover as oil prices edge higher on renewed geopolitical tensions in the Middle East. According to the Wall Street Journal, the tech-heavy index is poised to break its losing streak, while crude oil futures ticked up after the weekend escalation.
The moves come amid mixed economic data. The US Services PMI came in at 51.3 for June, beating expectations and signaling continued expansion in the services sector (per market data). In Canada, inflation accelerated to 3.2% year-on-year in May, exceeding forecasts (per market data). The American Petroleum Institute (API) reported a crude oil stock draw of 0.765 million barrels for the week ended June 19, further supporting oil prices (per market data).
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Sign InWith no major catalysts on the immediate horizon, traders are focusing on geopolitical developments in the Middle East and central bank speeches. Fed's Waller spoke on June 22, and ECB President Lagarde also gave remarks. Oil inventory data later this week will provide further direction for crude. The Nasdaq's ability to sustain a recovery will depend on easing inflation fears and corporate earnings.