The S&P energy sector has closed at a new record high for the first time since 2014, marking a significant milestone in the market. The surge in the energy sector, which is now up nearly 16% in 2024, comes as crude oil futures reach their highest levels since last October. This increase is driven by geopolitical tensions and OPEC+ policy decisions.
While major averages are struggling to maintain their momentum in the first quarter, the energy sector is leading the way within the S&P 500, with a 2.84% increase in the second quarter. This positive performance is a promising sign for investors and analysts alike.
In addition to the energy sector, other assets such as gold, Japanese stocks, and U.S. stocks are also showing strong growth. According to strategist Larry Jeddeloh, these assets are reaching “escape velocity,” with gold hitting all-time highs and Japanese stocks breaking out to new levels. The S&P 500 has also reached escape velocity, with no overhead resistance and strong earnings and GDP growth.
Furthermore, after-hours trading has seen significant movement in stocks such as Levi Strauss & Co, Blackberry, and Simulations Plus, with all three companies reporting better-than-expected results. These positive earnings reports have led to jumps in stock prices, indicating investor confidence in these companies.
Overall, the market is showing signs of strength and resilience, with stock futures opening flat but with potential for growth. Investors are optimistic about the future performance of various sectors and assets, making it an exciting time for the market.
