Key Highlights:
1️⃣ Israeli-Gaza Conflict Shakes Markets Early On 🌪️
- Markets reacted to renewed tensions between Israel and Gaza, with the S&P 500 Index experiencing an initial drop from 4281.91 to 4285.73.
2️⃣ Markets Bounce Back with Defense and Oil in the Spotlight 🚀🛢️
- Despite the early drop, defense-related stocks like Lockheed Martin and Northrop Grumman Corp soared, registering gains of 8.5% and 11%, respectively. Oil prices also witnessed an upward trajectory.
3️⃣ Gold Rises, Dollar Steady, & Yen in Focus 💰
- Gold prices increased by $13.59 amidst global uncertainties. The US dollar index experienced a marginal rise, with notable movements seen in the euro and yen.
On a seemingly turbulent Monday, US markets, including the S&P 500 Index, didn’t just wobble and fall. They stumbled, then rose, displaying an admirable comeback spirit. But what caused these initial jitters and eventual rise? Let’s dive in! 🏊♂️
The Early Dip: Israeli-Gaza Conflict’s Initial Impact 🌪️
- The dawn of the week saw the markets affected by the renewed Israeli-Gaza clash. While global tensions, especially in volatile regions, often send tremors across financial platforms, Monday was a classic example.
- By mid-morning, the S&P 500 Index slid from 4281.91 to 4285.73, shedding 3.852 points. Its peers, the Dow and Nasdaq, experienced similar trajectories. But was the downturn here to stay?
The Recovery: Shrugging Off Fears & Rising 🚀
- As the day progressed, traders seemed to adopt a “keep calm and carry on” attitude, offsetting the early bearish sentiment. By the time the closing bell rang, not only had the S&P 500 Index recovered, but it also marked a 0.6% ascent.
- So, who were the key players in this rebound? Defense-related companies like Lockheed Martin and Northrop Grumman Corp, who recorded gains of 8.5% and 11% respectively. But, why? Well, turmoil often fuels defense stock rallies.
- Meanwhile, the oil industry saw a silver lining too. Oil prices appeared to be on an upward trajectory, signaling profitable days ahead for producers.
Commodities and Currencies: How Did They Fare? 🛢️💰
- Gold: With uncertainty in the air, gold, a go-to safe-haven, saw an uplift, increasing by $13.59.
- Oil: West Texas Intermediate oil wasn’t left behind, registering a 4.24% growth. Brent crude wasn’t far behind, with a 4.09% jump.
- US Dollar & Others: The dollar index rose marginally. However, it’s worth noting the euro’s slip and the yen’s gain. Ever since the Bank of Japan’s intervention hint last month, the yen has been in a somewhat stagnant phase. Prior to this, it had lost a whopping 13% this year!
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Fuel Prices: The Odd One Out? ⛽
While there was a buzz around GasBuddy’s report indicating a drop in US gasoline prices, it was largely overshadowed. The international turmoil seemed to dwarf domestic fuel price dynamics, driving the focus on war-driven oil rallies.
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Sergio Richi
Editor, Logll Tech News