Zacks Investment Management

In this week’s Steady Investor, we unpack timely headlines and market indicators that could shape your next financial move—such as:

• The current state of the U.S. oil industry
• Tariffs drive broader inflation pressures
• Job market holds amid uncertainty

The Current State of the U.S. Oil Industry: Falling Prices, Sinking Stocks – Oil prices have been in a sustained decline, and it’s having an impact on the U.S. oil industry. Drilling activity is down, and energy stocks are widely underperforming broader markets. West Texas Intermediate recently fell below $60 a barrel—the lowest level in over four years—due to a combination of global oversupply and heightened uncertainty surrounding trade policy.¹

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In today’s unpredictable market, having a money manager who understands the challenges and keeps your goals front and center is more important than ever. But how do you know if they’re the right fit for you?

Our free guide, What to Look for in a Money Manager³, breaks down 10 essential questions every investor should ask—with clear explanations of why each matter for your financial security and growth.

Inside, you’ll find answers to questions like:

• How have your investment strategies performed vs. their benchmark?
• Are there fees or penalties if I decide to leave your firm?
• How do you measure risk?
• How are you compensated?
• And 6 more pointed questions

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Price pressures could continue. Many U.S. producers require higher prices to cover the full cost of operations, dividends, and debt service. As a result, oil companies have begun shedding rigs and scaling back drilling plans, a shift that may accelerate if prices remain subdued. Although some had hoped that lighter regulation and expedited permitting would support production, executives have grown wary of investing in new wells given the lackluster outlook.The production slowdown comes at a bad time, as global competition continues to intensify. OPEC and its partners are set to increase output by over 400,000 barrels per day, even as fears of a broader economic slowdown threaten to erode demand. The U.S., once viewed as the swing producer of global oil markets, may now find itself more constrained, with fewer low-cost wells to tap and investor appetite waning.Meanwhile, gasoline prices remain stubbornly elevated. Despite recent declines in crude, the average cost at the pump has edged higher ahead of the summer driving season, frustrating consumers and policymakers alike. With refining margins tight and supply chains still recovering from past disruptions, there appears to be little near-term relief for fuel costs.

Tariffs Add Inflation Pressure, Even Beyond Targeted Goods – 10% universal tariffs remain in place, but to date, the largest tariff increases have been aimed at select imports such as steel, electronics, and key industrial goods. Even still, businesses across a wide range of sectors are increasing prices even on unaffected items. In many cases, this is a preemptive move to preserve margins in the face of rising supplier costs, supply chain friction, and anticipated consumer tolerance for price hikes in a broadly inflationary environment. This kind of second-order pricing pressure is common when trade barriers are introduced. Firms aren’t just passing through direct costs. They’re also responding to the broader ripple effects of uncertainty, higher overhead, and tighter logistics. In some instances, businesses are using the current moment to reset prices strategically, assuming consumers are already primed for increases tied to policy changes. Consumers reading this may not be thrilled about these effects. But for investors, the outlook is a bit different. It shows that corporations are pursuing ways to offset impact, whether that’s by adjusting pricing, realigning sourcing, and/or taking a more flexible approach to managing through policy-induced shocks.⁴

Labor Market Resilient Despite Rising Uncertainty – The big news in labor markets this week came from April data. According to the recently released JOLTS report, job openings rose to 7.39 million, moving in the opposite direction many were expecting. Hiring activity also picked up, with the number of estimated hires reaching its highest level in nearly a year. At face value, the data suggests continued labor market resilience, even as economic uncertainty looms large. But the details paint a more complicated picture. Layoffs jumped by nearly 200,000, reversing March’s decline, and the “quits rate”—a key indicator of worker confidence—edged down to its lowest level this year. While job postings increased in sectors like business services, arts, and information, industries reliant on discretionary spending—such as leisure and hospitality—pulled back. The result is a labor market that feels less dynamic and more cautious, with fewer people voluntarily changing jobs and more companies hesitating to expand.⁵

Markets are constantly changing, bringing both risks and opportunities. To navigate this landscape successfully, it’s crucial to have a clear understanding of how your investments are managed.

That starts with asking the right questions—so you know your money manager is aligned with your goals and ready for today’s challenges. Our free guide, What to Look for in a Money Manager⁶, covers the essential questions every investor should ask before choosing or continuing with a manager, such as:

• How have your investment strategies performed vs. their benchmark?
• Are there fees or penalties if I decide to leave your firm?
• How do you measure risk?
• How are you compensated?
• And 6 more pointed questions

If you have $500,000 or more, we recommend clicking the link below to download your free guide today!

Disclosure