This week was chalk full of milestones on Wall Street as a Federal Reserve meeting and tensions in the Middle East conspired to send shockwaves across financial markets.
The S&P 500 climbed 2.3% this week and reached a new all-time high of 2,964.15 on Friday. The energy and tech sectors pushed the S&P 500 to its record this week, rising 5.2% and 3.3%, respectively.
Gold, meanwhile, surged around 4% and broke above $1,400 per ounce for the first time since 2013. Gold also had its best weekly gain since 2016.
Oil prices, however, left stocks and gold in the dust. West Texas Intermediate futures skyrocketed more than 9% this week, notching its biggest weekly gain since December 2016, when it surged more than 12%.
Treasurys also went through the roof this week, depressing yields. The benchmark 10-year yield hit a low of 1.973% this week, breaking below the key psychological 2% mark for the first time since November 2016.
The dollar, meanwhile, fell 1.3% against a basket of currencies, its biggest weekly drop since 2018. The U.S. currency also traded near its lowest level since March.
The Fed hinted at its monetary policy meeting it could cut rates as soon as July, stating it prepared to “act as appropriate” to sustain the current economic expansion. The Fed also removed the word “patient” when describing its approach to monetary policy, nodding at the recently weaker economic data.
This boosted stocks as lower rates makes it cheaper for companies to borrow money and grow their business or buy back their stock. The Fed’s announcement also boosted gold as lower rates depresses the dollar, making it cheaper for investors outside the U.S. to buy the precious metal.
Oil, meanwhile, surged as tensions between Iran and the U.S. flared up this week. A U.S. drone was shot down in Iranian airspace earlier in the week, stoking worries of potential supply disruptions in the Middle East.
—CNBC’s John Schoen, Gina Francolla and Chris Hayes contributed to this report.
