US Stocks Rise as Market Assesses Israeli-Hamas Conflict
The US stock market saw its third consecutive day of gains as investors analyzed the impact of the Israeli-Hamas conflict. In search of safety, investors turned to US Treasuries, causing bond yields to fall and boosting the stock market. This marked the first day of trading for Treasuries since the start of the conflict, as the bond market was closed on Monday.
Dow, S&P 500, and Nasdaq Performance
The Dow climbed 134.65 points (0.4%) to reach 33,739.30. The S&P 500 gained 22.58 points (0.5%), closing at 4,358.24. The Nasdaq rose by 78.61 points (0.6%), ending the day at 13,562.84.
Falling Yields Provide Relief for Stock Market Bulls
The yield on the US 10 Year Treasury Note fell by 0.149 points to 4.655%, while the 2-year note dropped by 0.148 points to 4.961%. As bond yields decrease, their prices rise inversely. This decline in yields was seen as a positive development by stock market bulls who have been facing pressure due to rising yields since July.
Oil Prices Decline as War-Related Fears Subside
Fears related to the conflict led to a decline in oil prices. West Texas Intermediate crude fell by $0.59 per barrel to $85.79, while Brent crude declined by $0.03 to $87.62. Concerns over potential sanctions against Iran had driven up prices initially, but Iran’s denial gradually eased those expectations.
Gold Prices Experience a Dip and Recovery
Gold prices dropped by $0.79 per Troy Ounce, reaching $1,860.48. However, a rally in the market around 10:30 am ET allowed gold to recover a significant portion of its earlier losses.
US Dollar Index and Currency Performance
The US Dollar Index increased by 0.29% to 105.77. The euro gained 0.3852%, finishing at 1.0606, while the yen fell 0.1%, causing the number of yen required to purchase a dollar to rise to 148.6660.
Hot Take: Market Reacts to Israeli-Hamas Conflict
The US stock market responded positively as it evaluated the impact of the Israeli-Hamas conflict. Falling bond yields provided relief for stock market bulls, while oil prices declined as war-related fears subsided. Gold prices experienced a dip but managed to recover later in the day. The US Dollar Index rose, while the euro gained against the dollar and the yen weakened. As tensions continue, investors will closely monitor developments and assess their potential effects on various markets.
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