In response to Wall Street’s assessment of the geopolitical dangers of a lengthy battle stemming from the Israel-Hamas conflict, U.S. stocks increased on Tuesday, helped by a decline in Treasury yields.
Gaining 63 points, or 0.2%, the Dow Jones Industrial Average. Both the Nasdaq Composite and the S&P 500 had gains of 0.1%.
In the midst of the turmoil, investors flocked to the traditional safe haven, driving the benchmark 10-year Treasury yield down 8 basis points to 4.694%. Since the bond market was shut on Columbus Day, these movements represent the market’s initial response to the Israel-Hamas conflict.
After rising the previous session, oil prices also slowed down. On Tuesday, the prices of Brent and West Texas Intermediate fell by 0.2%.
Stocks rose as a result of the decrease in yields because Wall Street is still worried about the recent sharp increase in interest rates. In addition, Friday’s stronger-than-expected September payrolls report and confidence in advance of a flurry of third-quarter profits this week may be encouraging investors to look past the geopolitical concerns brought on by the fighting.
The bloodiest attack in fifty years was launched by Hamas against Israel. According to the most recent statistics, Operation Al Aqsa Flood has claimed at least 900 lives in Israel, with more than 687 Palestinians killed in Gaza and the West Bank as a result of Israeli strikes in retaliation across the Gaza Strip. Since 2007, the Gaza Strip has been ruled by Hamas, a terrorist organisation with Iranian support.
Source (CNBC)
