Isfahan, Iran – Reports of unconfirmed explosions in Isfahan, Iran, have stirred up turmoil in the global markets, causing a surge in safe haven assets. The Fars news agency in Iran reported that explosions were heard near Isfahan’s airport, with the cause remaining unknown. Following these reports, the price of gold reached a fresh all-time high of $2,411.09 per ounce, while the Japanese yen strengthened by 0.45% against the U.S. dollar.
The uncertainty surrounding the situation in Iran also led to a 3% increase in oil prices, with Brent trading 2.86% higher at $89.60 a barrel and West Texas Intermediate rising by 2.83% to $85.05 per barrel. These developments have added to concerns about stability in the region and its potential impact on the global economy.
In the midst of these events, some sectors of the market are seeing gains despite the overall volatility. Utilities and consumer staples have managed to maintain positive momentum, with consumer staples up by 0.49% and utilities boasting a 0.4% gain for the week. These sectors have stood out as beacons of stability in an otherwise turbulent market.
While the past week saw significant fluctuations in bond yields and sharp selloffs in stocks, consumer staples have been lifted by companies like General Mills and Estee Lauder, both showing gains of more than 4% for the week. Similarly, utilities have seen increases led by Southern Company and Consolidated Edison, with both stocks up by more than 2% for the week.
Amidst the market turmoil, some companies have managed to make positive headlines after trading hours. Intuitive Surgical saw a 1% rise in its stock price after posting strong results, while KB Home advanced nearly 2% following the announcement of a new $1 billion share repurchase. However, Western Alliance experienced a less than 1% decline in extended trading after disappointing earnings were reported.
As sentiments in the market fluctuate, the latest weekly survey from the American Association of Individual Investors shows an increase in bearishness among Main Street investors. Despite this, bullishness has remained above average for the 24th week in a row, indicating a degree of resilience and optimism among investors in the face of market challenges.