Fed's Goolsbee Says Middle East Instability Is A Wild Card For The Fed In Terms Of Oil Prices And Gas; A Negative Supply Shock Is "Not Good"
Portfolio Pulse from Benzinga Newsdesk
Fed's Goolsbee highlights Middle East instability as a significant uncertainty for the Federal Reserve, particularly concerning its impact on oil prices and gas. He notes that a negative supply shock in this context would be detrimental.
April 12, 2024 | 4:27 pm
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Middle East instability and its potential negative impact on oil and gas prices could lead to broader market volatility, affecting SPY.
Given SPY's broad exposure to the market, any significant change in oil and gas prices due to geopolitical instability could lead to increased market volatility. This could negatively impact SPY's performance in the short term as investors react to the potential for higher energy costs and the subsequent effects on economic growth and corporate profits.
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IMPORTANCE 80
RELEVANCE 70