Level 1 — Absolute Beginner
Oil is much more expensive this week. The price jumped by more than four percent on Wednesday.
The price went up because of the war between the United States and Iran. Iran's top diplomat said Iran was not ready to talk peace.
At the same time, investors on Wall Street are waiting for big news. Three large companies, Alphabet, Tesla, and IBM, are about to share their money results for the last few months.
People want to know if Alphabet's huge spending on artificial intelligence is paying off. Many traders are nervous, so stock prices moved up and down all day.
- oil
- a thick liquid used for fuel and energy, often taken from under the ground
- price
- the amount of money needed to buy something
- diplomat
- a person who represents their country and talks with other countries
- investor
- a person who puts money into a company hoping to make more money
- earnings
- the amount of money a company makes
- spending
- money that is used or paid out
- nervous
- feeling worried or afraid about what might happen
- huge
- very big in size or amount
Level 2 — Elementary
Oil prices surged more than four percent on Wednesday, pushing Brent crude to its highest level in six weeks.
The jump came after US Secretary of State Marco Rubio said Iran was 'not serious about talks,' a comment that reignited fears the war between the United States and Iran could disrupt oil shipments even further.
Meanwhile, Wall Street entered the unofficial start of megacap earnings season, with Alphabet, Tesla, and IBM all scheduled to report results the same day.
Investors are especially focused on Alphabet, hoping its results will finally show a clear return on the company's enormous investments in artificial intelligence. Major stock indexes wavered throughout the session as traders weighed rising oil costs against earnings optimism.
- surge
- to increase suddenly and sharply
- crude
- unrefined oil as it comes out of the ground
- disrupt
- to interrupt the normal flow or process of something
- unofficial
- not formally announced or recognized
- megacap
- a company with an extremely large market value
- session
- a period of trading on a stock exchange
- waver
- to move unsteadily or show indecision
- optimism
- a feeling of hopefulness about the future
Level 3 — Intermediate
Oil prices surged more than four percent on Wednesday, sending Brent crude to its highest level in six weeks, as renewed fears over the Iran war collided with the unofficial start of megacap earnings season on Wall Street.
The spike followed remarks from US Secretary of State Marco Rubio, who said Iran was 'not serious about talks,' language that traders interpreted as diminishing the odds of a near-term ceasefire and heightening the risk of further disruption to oil shipments through the Persian Gulf.
Simultaneously, investors turned their attention to a trio of earnings reports from Alphabet, Tesla, and IBM, with Alphabet's results drawing particular scrutiny as the market looks for tangible evidence that the company's enormous capital expenditure on artificial intelligence is translating into revenue growth.
Major indexes wavered throughout the session, reflecting a tug of war between anxiety over rising energy costs and cautious optimism heading into earnings, a dynamic that a closely watched gauge of chipmaker stocks captured vividly as it slid nearly two percent.
- collide
- to come into conflict or happen at the same time in a clashing way
- diminish
- to make or become smaller or less significant
- heighten
- to increase or intensify
- scrutiny
- close and careful examination
- tangible
- able to be clearly perceived as real, not just theoretical
- capital expenditure
- money a company spends on long-term assets like equipment or buildings
- revenue
- the total income a company earns from its business
- gauge
- an instrument or measure used to estimate or judge something
Level 4 — Advanced
Oil prices surged more than four percent on Wednesday, propelling Brent crude to a six-week high, as renewed anxiety over the Iran war collided with the unofficial inauguration of megacap earnings season on Wall Street.
The spike followed remarks from US Secretary of State Marco Rubio, who characterized Iran as 'not serious about talks,' rhetoric that traders read as diminishing the near-term odds of a ceasefire and amplifying the risk of further disruption to crude shipments transiting the Persian Gulf.
Concurrently, investor attention pivoted to a trio of earnings disclosures from Alphabet, Tesla, and IBM, with Alphabet's results attracting outsized scrutiny as markets sought tangible confirmation that the company's prodigious capital expenditure on artificial intelligence infrastructure is finally converting into commensurate revenue growth.
Major indexes oscillated throughout the session, a dynamic reflecting the tension between escalating energy costs and cautious optimism ahead of earnings, one starkly illustrated by a closely watched gauge of chipmaker equities that shed nearly two percent even as broader benchmarks advanced.
- propel
- to drive or push something forward
- inauguration
- the formal beginning or start of something
- amplify
- to increase the size, strength, or intensity of something
- pivot
- to shift focus or direction, often suddenly
- prodigious
- remarkably great in size, extent, or degree
- commensurate
- corresponding in size or degree; proportionate
- oscillate
- to move back and forth in a regular pattern
- benchmark
- a standard or reference point against which things are compared, such as a stock index