S&P 500 Rises 0.6% at Midday on Easing Middle East Tensions
2026-07-24 16:37
•Anders Bylund •The Motley Fool
••••••• ••••••• Axe Capital view
Easing Middle East Tensions Signal Relief for Oil and SA Markets
Falling oil prices on diplomatic progress ease pressure on rand and local energy shares.
The recent drop in oil prices following reports of US-Iran peace talks hints at a welcome break for South Africa’s currency and energy sector. Sasol and other local oil-linked stocks often feel the pressure when Brent crude heads toward $100, so this pullback to around $95 is a relief. Rand strength tends to follow these developments too, as USD/ZAR reacts inversely to oil price swings. However, the respite might be short-lived if talks stall or regional tensions flare again. On the tech front, global giants are cautious with AI infrastructure spending, which indirectly impacts Prosus and Naspers as their international exposure makes them sensitive to global shifts. Waiting on clearer signals from upcoming earnings seems prudent before committing heavily. this is just my opinion and not financial advice
Trim exposure to Sasol as oil prices retreat but keep an eye on USD/ZAR for rand strength opportunities. Watch Prosus and Naspers closely but avoid adding new positions until clearer guidance emerges from the tech earnings season.
- Sasol
- USD/ZAR
- Prosus
- Renewed Middle East tensions pushing oil higher
- Global tech capex cuts hurting Prosus and Naspers earnings
7/10
Major U.S. stock indexes rallied Friday as oil prices fell 4% to $95/barrel on reports of potential U.S.-Iran peace negotiations brokered by Pakistan and China. The Dow gained 0.7%, S&P 500 rose 0.6%, while the Nasdaq barely moved up 0.1%. Apple boosted the market, but American Express and SK Hynix declined on earnings concerns. Investors await four more Magnificent 7 earnings reports next week to assess AI infrastructure spending trends.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Anders Bylund
Categories: Equities, Earnings, Commodities, Geopolitics, Technology, AI, Semiconductors
Tickers: AAPL, AXP, SKHY, GOOG, GOOGL, GOOGM, GOOGN
Sentiment: Mixed - Stock up 2.5% and providing the biggest boost to all three major indexes as investors rotate back into mega-cap tech. Stock dropped 5.9%, removing 120 points from the Dow. Despite beating earnings estimates and raising guidance, profit margins will compress in the second half due to reinvestment in cardholder perks.
Keywords: Middle East tensions, oil prices, earnings season, AI infrastructure, semiconductor sector, diplomatic negotiations, tech stocks
Insights:
- AAPL: Positive: Stock up 2.5% and providing the biggest boost to all three major indexes as investors rotate back into mega-cap tech.
- AXP: Negative: Stock dropped 5.9%, removing 120 points from the Dow. Despite beating earnings estimates and raising guidance, profit margins will compress in the second half due to reinvestment in cardholder perks.
- SKHY: Negative: Stock down 6.6% on reports of reallocating AI-oriented HBM manufacturing capacity to commodity DRAM production, raising concerns about potential slowdown in AI memory demand.