"Markets React to Middle East Conflict"
Updated
Future contracts of US securities edged higher on Tuesday as investors closely monitored policy comments from Federal Reserve officials and developments unfolding in the Middle East conflict.
1. Future Contracts Show Positive Momentum
At 04:53 ET (08:53 GMT), Dow Jones futures added 61 points, or 0.2%, S&P 500 futures rose by 7 points, or 0.2%, and Nasdaq 100 futures increased by 31 points, or 0.2%.
Major indices ended the previous session in the green, reversing earlier declines. Wall Street saw optimism partly due to the Fed officials' dovish statements, suggesting that the recent spike in US Treasury bond rates might reduce the need for short-term central bank borrowing cost hikes.
Energy stocks performed well, propelled by a significant surge in oil prices on Monday, driven by concerns over geopolitical ramifications amid the escalating conflict between Israel and the Palestinian Hamas group.
Shares of major airlines plummeted following the sharp rise in oil prices and decisions to cancel flights to Tel Aviv, Israel's primary travel gateway, by several airlines. Meanwhile, defense stocks gained ground on conflict-related news, with the S&P 500 Aerospace & Defense index witnessing its largest single-day increase since 2020.
As tensions persist in the Middle East, financial markets remain on edge, demonstrating the intricate relationship between global geopolitical events and market dynamics. Stay tuned for further updates as the situation unfolds.
1. Future Contracts Show Positive Momentum
At 04:53 ET (08:53 GMT), Dow Jones futures added 61 points, or 0.2%, S&P 500 futures rose by 7 points, or 0.2%, and Nasdaq 100 futures increased by 31 points, or 0.2%.
Major indices ended the previous session in the green, reversing earlier declines. Wall Street saw optimism partly due to the Fed officials' dovish statements, suggesting that the recent spike in US Treasury bond rates might reduce the need for short-term central bank borrowing cost hikes.
Energy stocks performed well, propelled by a significant surge in oil prices on Monday, driven by concerns over geopolitical ramifications amid the escalating conflict between Israel and the Palestinian Hamas group.
Shares of major airlines plummeted following the sharp rise in oil prices and decisions to cancel flights to Tel Aviv, Israel's primary travel gateway, by several airlines. Meanwhile, defense stocks gained ground on conflict-related news, with the S&P 500 Aerospace & Defense index witnessing its largest single-day increase since 2020.
As tensions persist in the Middle East, financial markets remain on edge, demonstrating the intricate relationship between global geopolitical events and market dynamics. Stay tuned for further updates as the situation unfolds.
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