Commodities have been steadily rising, adding upward pressure on inflation.
Most notably, crude oil prices have surged recently amid escalating geopolitical tensions in the Middle East. This supply risk has contributed to the sharp move higher in energy markets.
Further increases in commodity prices could complicate the Federal Reserve’s efforts to manage its dual mandate — balancing inflation control with maintaining a strong labor market.
One sector that stands to benefit from these dynamics is Energy ($XLE). Notice how the recent rise in crude oil prices has coincided with a strong bid in energy stocks, as shown below.
Our Chief Market Strategist, Steve Strazza, joined our analyst Jason Perz and The Global Macro Edge author John Netto live yesterday to discuss the latest FOMC developments.
They shared many valuable insights — you can watch the full discussion by clicking here.
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