Falling Oil Prices Raise New Concerns for Investors and the Fed
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 25 2026
0mins
Source: Yahoo Finance
- Impact of Falling Oil Prices: Brent crude has fallen below $70, which may reduce direct consumer spending pressure but could also lead to an overheating economy, thereby increasing inflation risks and presenting new challenges for the Federal Reserve.
- Shift in Market Narrative: Apollo's chief economist Torsten Sløk notes that the market's perception of oil prices has shifted from 'lower oil prices mean lower inflation' to 'lower oil prices may stimulate demand in an overheating economy, thus raising inflation', reflecting the complexity of the economic situation.
- Core PCE Expectations: Economists expect the core PCE, which excludes food and energy, to rise to 3.4% in May from 3.3% in April, indicating that inflation remains well above the Fed's 2% target, potentially forcing rate hikes.
- Pressure on Policymakers: While falling oil prices may alleviate consumer burdens in the short term, Sløk warns that the economic recovery and increased demand could compel the Fed to raise interest rates soon to address potential inflationary pressures.
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Analyst Views on APO
Wall Street analysts forecast APO stock price to rise
11 Analyst Rating
10 Buy
1 Hold
0 Sell
Strong Buy
Current: 122.170
Low
136.00
Averages
164.45
High
182.00
Current: 122.170
Low
136.00
Averages
164.45
High
182.00
About APO
Apollo Global Management, Inc. is a global alternative asset manager and a retirement services provider. It operates through three segments: Asset Management, Retirement Services and Principal Investing. The Asset Management segment focuses on three investing strategies: yield, hybrid, and equity. These strategies reflect the range of investment capabilities across its platform based on relative risk and return. The Retirement Services business is conducted by Athene Holding Ltd (Athene), a financial services company that specializes in issuing, reinsuring, and acquiring retirement savings products designed for the increasing number of individuals and institutions seeking to fund retirement needs. Athene product lines include annuities and funding agreements. The Principal Investing segment includes realized performance fee income, realized investment income from its balance sheet investments, and certain allocable expenses related to corporate functions supporting the entire company.
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.
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- Market Potential: Japan is a crucial retirement market characterized by an aging population and increasing demand for long-term retirement security, and Athene aims to leverage Hall's extensive experience to enhance its local footprint.
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See More
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