Iran Attacks Israel – US Market Wrap
The persistent rally in stocks was knocked for a loop Tuesday as investors retreated to safer corners of the market when the conflict in the Middle East intensified.
Haven assets were bid up with bonds, oil, gold and the US dollar all advancing after Iran fired a barrage of missiles at Israel following an advance of armed forces into Lebanon. The US is actively supporting preparations to defend Israel, according to an earlier report.
Gold briefly climbed above $2,670 an ounce during the trading day while oil topped $71 a barrel.
If the conflict blows over, she expect stocks and tech shares to recover. The tech sector was the session’s worst performers were Apple and NVIDIA sinking around 3%. The Nasdaq 100 trimmed a more than 2% loss to a 1.4% drop in afternoon trading. The S&P 500 fell 0.93% while Treasuries held onto an advance.
The clash eclipsed the mixed signals from Tuesday’s economic data. The US ISM price index fell by the most since May 2023, while US job openings rose in August to a three-month high, at odds with other readouts indicating slowing demand for workers. Treasury yields remained lower with the 10-year hovering around 3.74%.
