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@Mrzorro：Stocks Rise, Bond Prices Decline to Start Week U.S. stocks climbed Monday, reflecting investors’ hopes that the Israel-Hamas conflict wouldn’t have a major impact on the global economy. While conditions remained tense in the Middle East, investors expressed some relief that the conflict had yet to escalate into an even worse geopolitical crisis. Investors had piled into safer assets on Friday as a hedge against unexpected shocks over theweekend. The tech-heavy $NASDAQ(.IXIC)$ rebounded from a 1.2% decline on Friday, by adding back 1.2%. The $S&P 500(.SPX)$ rose 1.1%, and the $DJIA(.DJI)$ gained 314 points, or 0.9%. At the other end of the reversal, Monday was more challenging for assets such as gold and U.S. Treasurys, which had rallied Friday. Gold for October delivery slipped 0.3% to $1,921.10 a troy ounce after climbing 3.1% Friday, its largest one-day gain since December 2022. Bond prices also fell, pushing the yield on the 10-year U.S. Treasury note up to 4.709% from 4.628% Friday. One concern for investors is that an anticipated Israeli ground invasion of Gaza, aimed at destroying Hamas, might draw in Hamas ally Iran, leading to stricter sanctions on Iran oil exports and higher energy prices. Still, the conflict hasn’t yet led to a big jump in oil prices. Brent crude, the global benchmark, slumped 1.4% to $89.65 a barrel Monday. Monday’s gains were spread out among stocks, with no sector in the S&P 500 rising less than 0.7%. $Pfizer(PFE)$ shares gained 3.6% after the pharma giant slashed its 2023 revenue-guidance range, citing lower-than-expected sales of both its treatment and its vaccine for Covid-19 but also announced cost-cutting measures meant to save at least $3.5 billion through the end of 2024. The news weighed on other vaccine makers, with $Moderna, Inc.(MRNA)$ falling 6.5% and $Novavax(NVAX.US)$ dropping 6%. $Lululemon Athletica(LULU.US)$’s stock surged 10%, two days before it will join the S&P 500 index. $Charles Schwab(SCHW.US)$ gained 4.7% after the brokerage firm said in an earnings report that bank-deposit outflows were slowing. Some analysts noted that optimism about the U.S. economy might help to offset investors’ concerns about geopolitical tensions. In recent weeks, some Federal Reserve officials who had previously seemed more inclined to raise interest rates one more time this year have indicated that such action might not be necessary thanks to the recent increase in longer-term U.S. Treasury yields. Federal-funds futures, used by traders to bet on the direction of interest rates, showed Monday that traders saw only a 33% chance that the Fed will raise rates again this year, down from nearly 50% earlier in the month, according to $CME Group(CME.US)$ data. Meanwhile, the economy appears to be on solid footing, with the Atlanta Fed’s GDP tracker’s estimate of third-quarter economic growth currently at a robust 5.1%. That number will be updated on Tuesday after the government releases new retail-sales data. Economists surveyed by The Wall Street Journal expect overall sales to have increased 0.3% in September, down from 0.6% the previous month. @TigerStars @CaptainTiger @Daily_Discussion @TigerWire @Tiger_chat @Tiger_comments @MillionaireTiger Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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