Dow Jones Futures: Will Elon Musk's Big Robotaxi Bet Pay Off? Four Stocks In Buy Areas
The market rally held in a range this past week, amid Israel-Iran news. The Tesla robotaxi launch is set for Sunday.
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Associated Press
18 minutes ago
- Associated Press
Octa's oil outlook: Middle East tensions threaten global supply
KUALA LUMPUR, MALAYSIA - Media OutReach Newswire - 21 June 2025 - Crude oil, which is arguably the world's most important commodity, is on everybody's mind right now. The flared up conflict in the Middle East is increasing risks of a major oil supply shock, potentially pushing the price of 'black gold' into the stratosphere and completely derailing the global economy. In this article, Octa, a global retail broker, shares its expert opinion on the unfolding situation and outlines possible scenarios for the global oil market. Octa Broker As it often happens, the market started to price in the possibility of a new conflict in the Middle East well in advance. On 11 June, oil prices rose more than 4% after reports surfaced that the U.S. was preparing to evacuate its Iraqi embassy due to heightened security concerns in the region. Two days later, Israel and Iran exchanged airstrikes, pushing both Brent and West Texas Intermediate (WTI), the world's two major oil benchmarks, to five-month highs as investors anticipated potential supply disruptions from an open conflict. To this day, the conflict continues without resolution and oil prices remain elevated even as there are some telltale signs that the parties may be willing to negotiate. 'This burgeoning unrest introduces an unprecedented degree of volatility, significantly amplifying the specter of a catastrophic oil supply shock', argues Kar Yong Ang, a financial market analyst at Octa broker, adding that the conflict between Israel and Iran 'carries ominous potential to propel crude prices to unprecedented levels, thereby unleashing a cascade of detrimental effects that could, in the most dire of scenarios, cause a major global economic crisis'. Indeed, the Middle East in general and Iran in particular play a pivotal role in global energy markets. A substantial portion of the world's crude oil and liquified natural gas (LNG) is produced and exported in this region. Iran itself, despite the existing sanctions on exports, remains an important supplier of oil—notably, for China. Furthermore, a vast number of ships carrying crude oil and LNG transit through the Strait of Hormuz, a narrow yet vital chokepoint that Iran has repeatedly threatened to close. Should Iran act on this threat and block the strait, the repercussions would be quite severe, likely pushing global crude oil prices well above $100 per barrel, or even higher, due to the significant disruption of supply. Technically, if we look at a broader, long-term picture, WTI crude oil seems to be moving sideways with a minor bearish tilt. On a daily chart (see below), the price still has not escaped from the bearish parallel channel. However, due to the latest geopolitical news, the price has managed to rise above the 200-day moving average (MA) and seems poised to break above the critically important 77.60-78.00 area. 'Breaching the $80 handle should not be difficult if the current situation deteriorates sharply', says Kar Yong Ang. 'Continuing destruction of oil infrastructure in Iran, potential U.S. involvement in the war, countries' unwillingness to negotiate and, above all else, Iran's attempts to block the Strait of Hormuz, all of this will have a bullish impact on prices'. Indeed, a break above 80 level, would open the way towards 83.40, 85.20, 87.30, and 90.00 area. Alternatively, in case the hostilities moderate somewhat, other countries—particularly the U.S.—refrain from directly participating in the conflict, and both Israel and Iran express willingness to negotiate, bearish sentiment will immediately kick in. 'I think WTI oil may lose as much as 5 dollars per barrel in the blink of an eye should we see some progress in nuclear negotiations between Europeans and Iranians, which are due to commence in Geneva this Friday', concludes Kar Yong Ang. In this scenario, a break below 71.50 level would allow bears to target 67.80, 64.80 and 61.70. Overall, WTI crude price is now stuck in a broad range between $70 and $80. The move above and below these two levels will essentially indicate if the situation in the region is getting worse or is getting better. The chart below shows potential bullish and bearish targets, marked in green and red, respectively. NYMEX light sweet crude oil (WTI) daily chartSource: TradingView, Octa analysis and calculations ___ Disclaimer: This press release does not contain or constitute investment advice or recommendations and does not consider your investment objectives, financial situation, or needs. Any actions taken based on this content are at your sole discretion and risk—Octa does not accept any liability for any resulting losses or consequences. Hashtag: #Octa The issuer is solely responsible for the content of this announcement. Octa Octa
Yahoo
2 hours ago
- Yahoo
TSLA: Tesla Robotaxi Push Could Be a $1 Trillion Game-Changer
June 20 - Tesla (NASDAQ:TSLA) is set to launch its robotaxi operations in Austin this Sunday, with about 20 Model Y vehicles operating in a designated area, Wedbush mentioned in a Friday note. The firm called the move a key milestone that could define Tesla's next phase, estimating the autonomous unit alone could eventually add $1 trillion to the electric carmaker's valuation. Wedbush maintained its Outperform rating and $500 price target, citing Tesla's global reach and progress in artificial intelligence and driverless technology. The firm expects Tesla to scale the service to roughly 25 U.S. cities within a year and sees potential policy support ahead. Analysts said a Trump presidency could accelerate regulatory clearance for full self-driving systems. Tesla plans to begin production of its dedicated robotaxi model, the Cybercab, sometime next year, the note added. Wedbush believes Tesla's roadmap on autonomy and robotics will unfold gradually, saying, Rome wasn't built in a day. In a bull case, the firm sees Tesla reaching a $2 trillion market cap by the end of 2026. This article first appeared on GuruFocus.
Yahoo
2 hours ago
- Yahoo
3 reasons the US stock market could crash in September 2025
The US stock market's close to another all-time high, at least when looking at the S&P 500 index. That's terrific for anyone who's been snapping up shares in recent years. However, despite the seemingly strong investor sentiment, there are some potentially massive risks being overlooked, several of which could even trigger a full blown crash later this year. There are several concerning trends that the market is seemingly ignoring. I think the three biggest are: The investment management company Pimco has recently calculated the cyclically adjusted price-to-earnings (CAPE) ratio of the S&P 500 to be in the 94th percentile. That's a fancy way of saying US stocks are trading at earnings multiples significantly higher than their historical average. And historically, such a high CAPE has been a prelude to major market crashes as in 1987 and 2000. At the same time, new tax cuts and higher government spending in the US during a time of fiscal instability and tariff uncertainty create a lot of complications for the Federal Reserve. With fears of inflation potentially making a comeback, the central bank could be forced to start hiking interest rates again. And that might spark a fresh wave of corporate defaults given the growing bubble of overleveraged balance sheets. Beyond brewing trade wars, conflicts have started popping up across the globe, particularly in Eastern Europe and the Middle East. Continued escalation of tensions could lead to even further supply chain disruptions, oil price shocks, or a capital migration to gold, which could spark significant volatility in the stock market – particularly among the businesses trading at lofty valuations. As we approach the end of summer, the impact of current macroeconomic uncertainties is expected to emerge. That means September could be the tipping point. Does that mean a crash is guaranteed to happen? Of course not. Geopolitical tensions could calm while economist forecasts could be completely wrong (it wouldn't be the first time). So what should investors do? Trying to time the market is a strategy that almost never works. Instead, holding through the storm has been a far more successful strategy in the past. Having said that, trimming large portfolio positions might be prudent, especially if the stocks are trading at a lofty valuation. Take Nvidia (NASDAQ:NVDA) as an example. The GPU chip designer has been one of the best-performing US stocks over the last five years, thanks to skyrocketing demand for its technology. The explosion of artificial intelligence (AI) infrastructure investments by data centres has translated into triple-digit profit growth, propelling the market-cap well beyond $3trn. However, economic turbulence from the macro-environment could cause AI-related spending to slow significantly. That could potentially wipe out a significant chunk of its income stream. In such a scenario, a sharp share price drop wouldn't be surprising – especially for a company operating in the cyclical semiconductor space. That's why investors with a large position in Nvidia today may want to consider potentially trimming their exposure. If a crash does emerge, there are going to be some fantastic, high-quality companies going on sale. And by having a watchlist to top up on top-notch stocks, investors can be ready to consider incoming bargains like (possibly) Nvidia if they're not already invested. The post 3 reasons the US stock market could crash in September 2025 appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has recommended Nvidia. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
