Oil Falls Back Near $80 as the Iran Standoff Cools. 3 Tech Stocks That Could Benefit the Most.
The retreat in oil is taking pressure off interest rates, and a few high-multiple technology stocks stand to gain the most.
Oil Falls Back Near $80 as the Iran Standoff Cools. 3 Tech Stocks That Could Benefit the Most.
Overview
Crude oil has fallen back toward $80 a barrel, down from above $100 at the peak of this year's U.S.-Iran conflict, after the two sides moved closer to reopening the Strait of Hormuz and let shipments flow again.
The drop matters well beyond the gas pump. Surging oil had pushed U.S. inflation back above 4% and led traders to start pricing in the risk of a Federal Reserve interest rate hike later this year. As crude retreats, those inflation and rate fears are cooling -- and that has fueled a sharp rally in technology stocks, with the Nasdaq Composite jumping and Wall Street's main gauge of volatility sliding.
Details
Lower rates, or even just lower odds of higher rates, tend to lift one group more than any other: highly valued growth stocks, whose worth rests on profits expected years down the road.
Source
Originally published at www.fool.com.
