S&P 500 Index Reaches New All-Time High
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Fool
- Market Recovery: After a consistent downslide since February, the S&P 500 index rebounded this week to reach a new all-time high, currently up nearly 3% year-to-date and almost 32% over the past 12 months, reflecting market resilience and renewed investor confidence.
- Strong Energy Stock Performance: The ongoing conflict in the Middle East has driven oil prices higher, leading energy stocks like ExxonMobil, Chevron, and ConocoPhillips in the S&P 500 to significantly outperform the index, thereby enhancing overall index performance and mitigating declines in other sectors.
- Long-Term Investment Returns: Over the past 25 years, the S&P 500 has delivered total returns exceeding 850%, indicating that a $5,000 investment in an S&P 500 ETF 25 years ago would be worth approximately $48,000 today, highlighting the potential benefits of long-term holding.
- Investment Strategy Recommendation: Despite ongoing short-term volatility, the S&P 500 ETF, with its broad diversification and historical stability, emerges as an ideal investment choice during uncertain times, suitable for investors seeking both stability and potentially lucrative long-term returns.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy CVX?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on CVX
Wall Street analysts forecast CVX stock price to fall
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 188.150
Low
158.00
Averages
176.95
High
206.00
Current: 188.150
Low
158.00
Averages
176.95
High
206.00
About CVX
Chevron Corporation is an integrated energy company. The Company produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance its business and industry. The Company’s segments include Upstream and Downstream. Upstream operations consist primarily of exploring for, developing, producing and transporting crude oil and natural gas; liquefaction, transportation and regasification associated with LNG; transporting crude oil by major international oil export pipelines; processing, transporting, storage and marketing of natural gas; carbon capture and storage; and a gas-to-liquids plant. Downstream operations consist primarily of the refining of crude oil into petroleum products; marketing crude oil, refined products, and lubricants; manufacturing and marketing of renewable fuels, and transporting of crude oil and refined products by pipeline, marine vessel, motor equipment and rail car.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Energy Stocks Plummet While Travel Stocks Rally
- Energy Stocks Plummet: Energy stocks fell sharply as oil prices dropped over 12% after Iran opened the Strait of Hormuz during the ceasefire between Israel and Lebanon, with APA Corporation down more than 9% and Valero Energy falling over 8.5%, negatively impacting overall confidence in the energy sector.
- Travel Stocks Rally: Following Iran's announcement to open the Strait of Hormuz for commercial shipping, Royal Caribbean surged 9.7%, United Airlines jumped over 9%, and Expedia gained 5%, reflecting optimistic market sentiment regarding travel recovery.
- Critical Metals Surge: Greenland's government approved the transfer of a 50.5% interest in Tanbreez Mining to Critical Metals, increasing its stake in the rare earths mine to 92.5%, which propelled the company's shares up over 40%, highlighting the strategic importance of rare earth resources.
- Netflix Disappoints: Streaming giant Netflix saw its stock drop 9% as it projected second-quarter earnings of 78 cents per share, missing the 84 cents forecast by analysts, compounded by co-founder Reed Hastings' announcement to leave the board in June, further dampening investor confidence.
See More
Oil Stocks Plummet as Strait of Hormuz Reopens
- Oil Stock Decline: Major U.S. oil stocks, including Exxon Mobil, Chevron, and ConocoPhillips, fell between 5% and 14% on Friday, reflecting market concerns over declining oil prices, particularly in light of the reopening of the Strait of Hormuz.
- Crude Price Plunge: U.S. West Texas Intermediate (WTI) crude futures dropped nearly 13%, hovering around $82 per barrel, the lowest in over a month, while Brent crude futures fell about 11%, which could negatively impact oil companies' profitability.
- Market Surge: The reopening of the Strait of Hormuz led to a significant surge in U.S. equities on Friday, with the Dow Jones Industrial Average soaring by more than 1,000 points, and both the S&P 500 and Nasdaq Composite reaching all-time highs, indicating strong market optimism regarding economic recovery.
- Trump's Announcement: President Trump stated on social media that the U.S. and Iran are collaborating to remove sea mines in the Strait of Hormuz, eliminating a critical threat to vessels, which may further bolster market confidence.
See More
Strait of Hormuz Opening Impacts Oil Prices
- Oil Price Plunge: WTI crude oil prices fell over 13% and Brent crude dropped 12%, with Brent now below $88 and WTI at $82, reflecting a significant decline from just months ago when Brent was priced at $60, indicating a bearish outlook on future oil prices.
- Chevron Stock Decline: Chevron's shares dropped 7% by 11:15 a.m. ET due to falling oil prices, as investors began to factor in the potential for lower oil prices, raising concerns about the company's profitability in a declining price environment.
- Geopolitical Impact: Iranian Foreign Minister confirmed the Strait of Hormuz is open to all commercial vessels, despite the ongoing U.S. blockade on Iranian ships, leading to market optimism that the conflict in Iran may be nearing resolution, potentially restoring oil supply from the Persian Gulf.
- Investor Sentiment Fluctuation: While the drop in oil prices pressures stocks like Chevron and Conoco, investor sentiment remains mixed, with concerns over Conoco's high valuation at over 28 times earnings, especially given its projected growth rate of under 15%, making it appear expensive in the current market context.
See More
S&P 500 Index Reaches New All-Time High
- Market Recovery: After a consistent downslide since February, the S&P 500 index rebounded this week to reach a new all-time high, currently up nearly 3% year-to-date and almost 32% over the past 12 months, reflecting market resilience and renewed investor confidence.
- Strong Energy Stock Performance: The ongoing conflict in the Middle East has driven oil prices higher, leading energy stocks like ExxonMobil, Chevron, and ConocoPhillips in the S&P 500 to significantly outperform the index, thereby enhancing overall index performance and mitigating declines in other sectors.
- Long-Term Investment Returns: Over the past 25 years, the S&P 500 has delivered total returns exceeding 850%, indicating that a $5,000 investment in an S&P 500 ETF 25 years ago would be worth approximately $48,000 today, highlighting the potential benefits of long-term holding.
- Investment Strategy Recommendation: Despite ongoing short-term volatility, the S&P 500 ETF, with its broad diversification and historical stability, emerges as an ideal investment choice during uncertain times, suitable for investors seeking both stability and potentially lucrative long-term returns.
See More
Strait of Hormuz Reopened, Oil Prices Plummet
- Oil Price Plunge: WTI crude oil prices fell over 13%, while Brent crude dropped 12%, with Brent now below $88 and WTI at $82, indicating a significant decrease from just a few months ago when Brent was priced at $60, yet still down from nearly $110 weeks prior, reflecting market pessimism about future oil prices.
- Strait of Hormuz Reopened: Iranian Foreign Minister confirmed that the Strait of Hormuz is now open to all commercial vessels, a decision linked to the ceasefire between Israel and Lebanon, which is expected to boost regional commercial activity, although the U.S. blockade on Iranian ships remains in effect.
- Investor Reactions: While the reopening of the Strait is positive for most investors, as evidenced by a 1.2% rise in the S&P 500, it negatively impacts Chevron (CVX), whose shares fell 7% by mid-morning, reflecting concerns over declining oil prices.
- Uncertain Market Outlook: Despite President Trump's confirmation of the Strait's reopening, he stated that this is unrelated to the ceasefire in Lebanon, complicating market expectations for future oil prices and related stocks, particularly given Conoco's high P/E ratio of over 28 and projected growth rate below 15%.
See More
US Stocks Rise as Oil Prices Plunge
- Market Highs: The S&P 500 rose by 0.87% and the Nasdaq 100 reached an all-time high, reflecting growing investor optimism regarding a potential US-Iran peace deal, which may enhance risk appetite and further boost stock market momentum.
- Oil Price Plunge: WTI crude prices fell over 10% after Iran announced the Strait of Hormuz is now fully open for commercial shipping, easing inflation concerns and contributing to a 6 basis point drop in the 10-year Treasury yield, which invigorates the bond market.
- Earnings Optimism: Q1 earnings for the S&P 500 are projected to increase by 12% year-over-year, although excluding the tech sector, growth is only expected at 3%, yet this overall positive outlook may attract more investor interest and bolster market confidence.
- Airline Stocks Surge: With reduced fuel costs, United Airlines (UAL) shares surged over 10%, while other airlines like Royal Caribbean (RCL) and Alaska Air (ALK) also saw significant gains, indicating strong market confidence in the recovery of the airline industry.
See More
Energy Stocks Plummet While Travel Stocks Rally
- Energy Stocks Plummet: Energy stocks fell sharply as oil prices dropped over 12% after Iran opened the Strait of Hormuz during the ceasefire between Israel and Lebanon, with APA Corporation down more than 9% and Valero Energy falling over 8.5%, negatively impacting overall confidence in the energy sector.
- Travel Stocks Rally: Following Iran's announcement to open the Strait of Hormuz for commercial shipping, Royal Caribbean surged 9.7%, United Airlines jumped over 9%, and Expedia gained 5%, reflecting optimistic market sentiment regarding travel recovery.
- Critical Metals Surge: Greenland's government approved the transfer of a 50.5% interest in Tanbreez Mining to Critical Metals, increasing its stake in the rare earths mine to 92.5%, which propelled the company's shares up over 40%, highlighting the strategic importance of rare earth resources.
- Netflix Disappoints: Streaming giant Netflix saw its stock drop 9% as it projected second-quarter earnings of 78 cents per share, missing the 84 cents forecast by analysts, compounded by co-founder Reed Hastings' announcement to leave the board in June, further dampening investor confidence.
See More
Oil Stocks Plummet as Strait of Hormuz Reopens
- Oil Stock Decline: Major U.S. oil stocks, including Exxon Mobil, Chevron, and ConocoPhillips, fell between 5% and 14% on Friday, reflecting market concerns over declining oil prices, particularly in light of the reopening of the Strait of Hormuz.
- Crude Price Plunge: U.S. West Texas Intermediate (WTI) crude futures dropped nearly 13%, hovering around $82 per barrel, the lowest in over a month, while Brent crude futures fell about 11%, which could negatively impact oil companies' profitability.
- Market Surge: The reopening of the Strait of Hormuz led to a significant surge in U.S. equities on Friday, with the Dow Jones Industrial Average soaring by more than 1,000 points, and both the S&P 500 and Nasdaq Composite reaching all-time highs, indicating strong market optimism regarding economic recovery.
- Trump's Announcement: President Trump stated on social media that the U.S. and Iran are collaborating to remove sea mines in the Strait of Hormuz, eliminating a critical threat to vessels, which may further bolster market confidence.
See More
Strait of Hormuz Opening Impacts Oil Prices
- Oil Price Plunge: WTI crude oil prices fell over 13% and Brent crude dropped 12%, with Brent now below $88 and WTI at $82, reflecting a significant decline from just months ago when Brent was priced at $60, indicating a bearish outlook on future oil prices.
- Chevron Stock Decline: Chevron's shares dropped 7% by 11:15 a.m. ET due to falling oil prices, as investors began to factor in the potential for lower oil prices, raising concerns about the company's profitability in a declining price environment.
- Geopolitical Impact: Iranian Foreign Minister confirmed the Strait of Hormuz is open to all commercial vessels, despite the ongoing U.S. blockade on Iranian ships, leading to market optimism that the conflict in Iran may be nearing resolution, potentially restoring oil supply from the Persian Gulf.
- Investor Sentiment Fluctuation: While the drop in oil prices pressures stocks like Chevron and Conoco, investor sentiment remains mixed, with concerns over Conoco's high valuation at over 28 times earnings, especially given its projected growth rate of under 15%, making it appear expensive in the current market context.
See More
S&P 500 Index Reaches New All-Time High
- Market Recovery: After a consistent downslide since February, the S&P 500 index rebounded this week to reach a new all-time high, currently up nearly 3% year-to-date and almost 32% over the past 12 months, reflecting market resilience and renewed investor confidence.
- Strong Energy Stock Performance: The ongoing conflict in the Middle East has driven oil prices higher, leading energy stocks like ExxonMobil, Chevron, and ConocoPhillips in the S&P 500 to significantly outperform the index, thereby enhancing overall index performance and mitigating declines in other sectors.
- Long-Term Investment Returns: Over the past 25 years, the S&P 500 has delivered total returns exceeding 850%, indicating that a $5,000 investment in an S&P 500 ETF 25 years ago would be worth approximately $48,000 today, highlighting the potential benefits of long-term holding.
- Investment Strategy Recommendation: Despite ongoing short-term volatility, the S&P 500 ETF, with its broad diversification and historical stability, emerges as an ideal investment choice during uncertain times, suitable for investors seeking both stability and potentially lucrative long-term returns.
See More
Strait of Hormuz Reopened, Oil Prices Plummet
- Oil Price Plunge: WTI crude oil prices fell over 13%, while Brent crude dropped 12%, with Brent now below $88 and WTI at $82, indicating a significant decrease from just a few months ago when Brent was priced at $60, yet still down from nearly $110 weeks prior, reflecting market pessimism about future oil prices.
- Strait of Hormuz Reopened: Iranian Foreign Minister confirmed that the Strait of Hormuz is now open to all commercial vessels, a decision linked to the ceasefire between Israel and Lebanon, which is expected to boost regional commercial activity, although the U.S. blockade on Iranian ships remains in effect.
- Investor Reactions: While the reopening of the Strait is positive for most investors, as evidenced by a 1.2% rise in the S&P 500, it negatively impacts Chevron (CVX), whose shares fell 7% by mid-morning, reflecting concerns over declining oil prices.
- Uncertain Market Outlook: Despite President Trump's confirmation of the Strait's reopening, he stated that this is unrelated to the ceasefire in Lebanon, complicating market expectations for future oil prices and related stocks, particularly given Conoco's high P/E ratio of over 28 and projected growth rate below 15%.
See More
US Stocks Rise as Oil Prices Plunge
- Market Highs: The S&P 500 rose by 0.87% and the Nasdaq 100 reached an all-time high, reflecting growing investor optimism regarding a potential US-Iran peace deal, which may enhance risk appetite and further boost stock market momentum.
- Oil Price Plunge: WTI crude prices fell over 10% after Iran announced the Strait of Hormuz is now fully open for commercial shipping, easing inflation concerns and contributing to a 6 basis point drop in the 10-year Treasury yield, which invigorates the bond market.
- Earnings Optimism: Q1 earnings for the S&P 500 are projected to increase by 12% year-over-year, although excluding the tech sector, growth is only expected at 3%, yet this overall positive outlook may attract more investor interest and bolster market confidence.
- Airline Stocks Surge: With reduced fuel costs, United Airlines (UAL) shares surged over 10%, while other airlines like Royal Caribbean (RCL) and Alaska Air (ALK) also saw significant gains, indicating strong market confidence in the recovery of the airline industry.
See More
