Exxon Mobil Rallies on Middle East Tensions as Analyst Warns $150 Oil
XOM•XOM•XOM•XOM•Exxon Mobil shares led energy stocks higher as Middle East tensions pushed crude prices up. Ed Yardeni warns oil may spike to $150/barrel and expects July Fed rate hikes even after a 19.1% S&P rally since March 30, suggesting earnings might be priced in.
Exxon Mobil and its energy sector peers posted the largest percentage gains Wednesday as escalating Middle East tensions drove crude prices higher. The broader market pulled back, with the Dow falling 1.2% and the S&P 500 down 0.75%, but energy stocks outperformed on inflation and supply concerns.
Analyst Ed Yardeni cautions that oil could surge to $150 per barrel if geopolitical risks intensify, and he projects a Fed rate increase in July. He notes the S&P 500 has rallied 19.1% since March 30 on strong Q1 earnings, warning that much of that growth may already be reflected in current valuations.
