US equity indexes were up after midday on Tuesday as technology bounced back amid a pull-back in crude oil futures.
The Nasdaq Composite jumped 1.1% to 18,124.6, with the S&P 500 up 0.7% to 5,737.8 and the Dow Jones Industrial Average 0.2% higher at 42,024.0. All sectors except energy and materials rose intraday, with technology being the standout gainer.
Hezbollah supports efforts aimed at achieving a ceasefire in Lebanon, CNN reported, citing the militant group's top official Tuesday, which marks the first time the Iran-backed outfit has publicly endorsed a truce and not conditioned it to stop the war in Gaza.
The CBOE Volatility Index, also known as the fear gauge for investors, dropped 5.5% to 21.39.
Gold slumped 1.3% to $2,631.01 an ounce, and silver sank 4.5% to $30.56.
West Texas Intermediate crude oil futures slumped 5.3% to $73.07 a barrel.
Apart from developments on the geopolitical front, crude oil fell after traders overnight were said to have been let down by Chinese policymakers who failed to announce more fiscal stimulus, according to a note from Macquarie. In a press conference, the communication from China's planning agency, the National Development and Reform Commission, signaled the government's fiscal initiatives were being accelerated but were not "incremental."
"The disappointment -- for traders expecting to see new fiscal spending -- is what has tamped down on most commodity prices today, such as crude oil, iron ore, and copper," Thierry Wizman, global foreign-exchange and rates strategist at Macquarie, said in the note.
The US-listed shares of the Alibaba Group (BABA) were down 6.7% intraday. JD.com (JD) traded 7.3% lower, Nio (NIO) sank 6.3%, Baidu (BIDU) dropped 7%, and Bilibili (BILI) slumped 13%. Hong Kong's Hang Seng Index plunged 9.4% at the close on Tuesday, the worst day since 2008.
In economic news, Redbook US same-store sales increased by 5.4% from a year earlier in the week ended Oct. 5 after a 5.3% year-over-year increase in the previous week.
The US international trade deficit narrowed to $70.43 billion in August from a $78.92 billion gap in July, compared with the $70.5 billion gap expected in a survey compiled by Bloomberg. Exports rose in the month, while imports fell.
The NFIB small business optimism index edged up 0.3 points sequentially to 91.5 in September. The latest reading marked the 33rd straight month below the 50-year average of 98, according to the NFIB. The consensus was for a 92 print in a survey compiled by Bloomberg.
US Treasury yields were mixed intraday. The 10-year yield little changed at 4.02% traded close to its highest since the end of July. The two-year rate dropped 4.2 basis points to 3.96%, retreating from its strongest since late August.
In company news, Goldman Sachs raised its price target on Palo Alto Networks (PANW) to $425 from $376 while maintaining its buy rating. BNP Paribas Exane initiated the cyber security company at outperform, with a $410 price target. Palo Alto shares traded up 5% intraday, among the top performers on the S&P 500 and the Nasdaq.
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