Stocks rose Tuesday, with the Dow Jones Industrial Average notching its third straight session of gains, as market participants continued to assess the geopolitical tensions from the Israel-Hamas war. The Dow added 130 points, while the S&P 500 Index and Nasdaq Composite rose by 0.5% and 0.6%, respectively.
Here's how the market settled on Tuesday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
Tuesday's moves follow Monday's at-first downdeat reaction to Hamas launching a surprise attack on Israel on Saturday, leading Israel to declare war on the Palestinian militant group. The benchmark 10-year U.S. Treasury yield fell by nearly 13 basis points to about 4.65%, reflecting the bond market's first move since the conflict began as it was closed Monday. Oil prices also declined after jumping higher on Monday.
The shockwaves from the Israel-Hamas war is not likely to cause a new bear market, said Sam Stovall, chief investment strategist at CFRA Research, late Monday. Instead, Stovall says investors should monitor moves in oil prices in the coming days for signs if the conflict will lead to long-term market headwinds.
"Even though oil prices spiked by 4.3% on the first trading day after the attack, the U.S. dollar weakened and share prices rose, implying that traders think this military shock will also likely not trigger a new bear market," Stovall said.
On the earnings front, PepsiCo
In economic news, consumer outlook for inflation rose slightly in September, according to a New York Federal Reserve survey released Tuesday. Expectations for inflation a year from now rose to 3.7%, the survey showed, rising a 0.1 percentage point from August. For three-year expectations, the outlook rose a 0.2 percentage point to 3%.
Elsewhere, Palantir Technologies
Bank of America analyst Omar Dessouky upgraded Electronic Arts
"Based on our analysis of SPORTS FC 24′s early launch stats as well as pricing, we believe investor fear over SPORTS FC's franchise transition is overblown, and we view EA's current valuation discount vs game publisher peers as a particularly attractive point of entry," Dessouky wrote in a note.
For Wednesday, market participants will react to September's producer price index (PPI) reading on an overall and core basis, with economists expecting month-to-month growth of 0.3% and 0.2%, respectively.