Tuesday’s gains in U.S. stocks were aided by a decline in Treasury yields as Wall Street evaluated the geopolitical dangers of a lengthy conflict stemming from the Israel-Hamas conflict.
The Dow Jones Industrial Average rose 246 points, or 0.7%. The Nasdaq Composite rose 1.2% and the S&P 500 gained about 1%.
The benchmark 10-year Treasury yield fell 8 basis points to 4.694% as investors sought refuge in the time-honored safe haven. These changes reflect the initial response of the bond market, which was shut on Columbus Day, to the Israel-Hamas war.
After rising in the previous day, oil prices also declined, giving investors some solace. Tuesday saw declines of 0.4% and 0.3% in the West Texas Intermediate and Brent futures, respectively.
Stocks rose as a result of the decrease in yields because Wall Street is still worried about the recent sharp increase in interest rates. Due to Friday’s stronger-than-expected September payrolls report and excitement around a flood of third-quarter earnings this week, investors may also be able to ignore the geopolitical dangers brought on by the Israel-Hamas conflict.
Source (CNBC)
