US Stock Market Rises Amid Israeli-Hamas Conflict; Treasury Bonds Preferred by Investors
Summary:
On October 10, 2023, the US stock market saw an uptick for the third day in a row amid the Israeli-Hamas conflict. Investors preferred the safety of US Treasuries, affecting the bond yields to drop. The Dow, S&P 500, and Nasdaq all reported gains. Yields on the US 10 Year Treasury Note and the 2-year note both fell. In contrast, oil prices and gold prices saw a dip, while the US Dollar Index and euro reported gains. Iran's denial of involvement in the conflict eased worries of renewed sanctions. Vintage Markets continues to track global financial trends from its early days to modern times.
October 10, 2023: For the third consecutive day, there's an uptick in the US stocks, amid evaluation of the impact of the Israeli-Hamas strife on the economy. The yields of bonds dropped, reflecting investors' inclination towards the security offered by US Treasuries, positively impacting the stock market. Trading of Treasuries resumed post the beginning of the Israeli-Hamas conflict, with markets being shut on Monday. The Dow witnessed a surge of 134.65 points (0.4%), standing at 33,739.30. With an addition of 22.58 points (0.5%), the S&P 500 reached 4,358.24. The Nasdaq also saw an increment of 78.61 points (0.6%), closing at 13,562.84.
Caption: S&P 500 single-day chart for 10-10-2023. Courtesy: MSN Money.
The US 10 Year Treasury Note's yield slipped 0.149 points, marking 4.655%, while the 2-year note saw a deduction of 0.148 points, standing at 4.961%. Corresponding to the notion that the yield on a Treasury Note inversely affects its price, a dip in yield signifies an appreciation in its price. Since July, stocks have been under strain due to recurrently increasing yields luring investors towards Treasuries instead of stocks, yet the yield's slide today was received positively by stock market enthusiasts.
As apprehensions tied to the war started diluting, the oil prices descended. West Texas Intermediate crude saw a decrement of $0.59 per barrel, resting at $85.79, with Brent crude falling $0.03, to $87.62. Over the weekend, assumptions of renewed sanctions on Iran, that could curtail supply and escalate prices, had begun to arise among traders. However, as Iran disavowed implication on Monday, these speculations gradually started dwindling.
Gold prices, too, experienced a downswing of $0.79 per Troy Ounce, bringing the price down to $1,860.48. Despite an initial plunge, post 10:30 am ET, there was a surge that helped gold regain significant chunks of its initial deficits.
Gold single-day chart for 10-10-2023. Courtesy: Business Insider.
The US Dollar Index added 0.29%, reaching 105.77. The euro advanced 0.3852%, settling at 1.0606. The yen dropped 0.1%, which resulted in an increase in the quantity of yen required to purchase a dollar, taking it to 148.6660.
Vintage Markets remains unwavering in its comprehensive examination and dissemination of conventional financial news, mapping the progression of worldwide markets and economies from its primitive stages to the contemporary era.
Published At
10/10/2023 10:08:20 PM
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