Commodities
Oil Struggles as Traders Swap Commodities for Growth Stocks
- Traders pile into growth stocks after Fed signaled progress
- Stockpile builds, lackluster demand also acting as headwinds
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Oil struggled to find a bid after the Federal Reserve’s recent comments spurred traders to shun energy and pour money into interest-rate sensitive stocks.
Crude broke out of a recent pattern of following moves in the equity market. After the Fed said on Wednesday that it had made progress in taming inflation, equity traders have piled into technology stocks and other rate-sensitive investments. That has left oil struggling for traction as the commodity’s fundamentals aren’t improving fast enough to change trader sentiment.