US stocks close at record highs: As The earnings season approaches, the S&P 500 index reached a record level,

at the time that index rose slightly amid caution before the five largest companies announced their earnings.

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US stocks close at record highs

Oil stability

Evergrande liquidation

US stocks close at record highs

Traders are anticipating a wave of companies’ earnings announcements,

that are expected to significantly influence the direction of the markets over the coming months.
After a strong rise that led to the S&P 500 index reaching a record level,

the index witnessed a slight rise in light of the state of caution before announcing

the results of five large companies with a market value exceeding 10 trillion dollars.

Before the Federal Reserve’s decision,
the US Treasury was expected to reveal an increase in its sales of long-term bonds,
threatening higher yields and putting pressure on growth stocks.

On the other hand, the S&P 500 index rose around 4,900 points,
while Amazon retreated from its acquisition of iRobot Corp. for $1.4 billion.
Yields on 10-year Treasury bonds fell, as investors watch for more profit-taking.

Fundamentally, US economic data remains positive,
and the Fed is expected to feel comfortable cutting interest rates starting in May,
despite further signals on economic stability are needed.

Oil stability

Brent crude futures currently stand at $83.26 per barrel,
after hitting the highest level since November 29 at $82.06 per barrel earlier.

Likewise, West Texas Intermediate crude futures remain at $76.90 per barrel.

Russian oil refineries were attacked by Ukrainian drones,

affecting their production and the outlook for exports of refined products.

Data from the shipping company LSEG indicated that Russia was reducing exports of the petrochemical naphtha,
which could lead to a significant reduction in the volume of its exports.

Evergrande liquidation

On the demand front, oil demand expectations were affected by the Hong Kong court’s decision to liquidate the Evergrande Group,
which affected demand in the world’s largest oil importer.
The OPEC+ member states meeting is scheduled for February,

yet expectations indicate that there will be no new decisions on production policy.

Oil prices remain under the influence of these movements and volatile market expectations.

US stocks close at record highs

US stocks close at record highs

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