As Wall Street evaluated the geopolitical dangers from the Israel-Hamas conflict, U.S. stocks advanced on Tuesday, helped by falling Treasury yields.
About 134 points, or 0.4%, were added to the Dow Jones Industrial Average. The S&P 500 increased by 0.5%, while the Nasdaq Composite increased by around 0.6% after previous advances.
In the midst of the fight, investors sought for secure assets, causing the benchmark 10-year Treasury yield to drop more than 12 basis points to around 4.6%. Prices fluctuate in the opposite way from yields. The activity was in response to the Israel-Hamas dispute in the U.S. bond market, which was open Tuesday due to Columbus Day.
After rising in the previous day, oil prices also declined, giving investors some solace.
Stocks rose as a result of declining bond yields, but Wall Street’s worry over the recent, sharp increase in interest rates persisted. The stronger-than-expected September payrolls figure released on Friday and confidence in front of a slew of third-quarter earnings this week also helped investors begin to look past the geopolitical dangers brought on by the Israel-Hamas conflict.
Source (CNBC)
