We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
U.S. stocks ended higher on Monday after shaking off early pressures following the deadly Hamas attack on Israel over the weekend as investors digested comments from multiple Fed officials. All the three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.6% or 197.07 points to finish at 33,604.65 points.
The S&P 500 climbed 0.6% or 27.16 points, to close at 4,335.66 points. Energy and industrial stocks were the biggest gainers.
The Energy Select Sector SPDR (XLE) jumped 3.3%, while the Industrials Select Sector SPDR (XLI) rose 1.6%. All the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq gained 0.4% or 52.90 points to end at 13,484.24 points.
The fear-gauge CBOE Volatility Index (VIX) was up 1.43% to 17.70. A total of 8.71 billion shares were traded on Monday, lower than the last 20-session average of 10.68 billion. Advancers outnumbered decliners on the NYSE by a 2.19-to-1 ratio. On the Nasdaq, a 1.03-to-1 ratio favored advancing issues.
Hamas Attack Escalates Fears of Broader Conflict
Wall Street ended higher on Friday but investors’ confidence was low after the opening bell on Monday. Stocks came under pressure in the early trading hours as the Israel-Palestine conflict escalated following the surprise Hamas attack on Saturday.
Israel was caught off guard after militant group Hamas staged an invasion that has so far resulted in the deaths of over 800 Israelis. Hundreds have also been abducted and taken to Gaza. Israel, in retaliation, has been conducting airstrikes on Gaza that have killed another 800 Palestinians.
The surprise attack created panic about a broader conflict as many believe this could impact the energy market, potentially leading to a short-term spike in crude oil prices. However, experts feel the impact could be relatively limited.
On Monday, WTI (West Texas Intermediate) crude oil futures rose 4.3%, reaching to settle at $86.38. International Brent futures saw a rise of 4.2%, reaching $88.15.
Comments from Fed Officials Boost Investors’ Confidence
The initial losses were pared in the afternoon session as investors digested comments from Federal Reserve officials. Dallas Federal Reserve Bank President Lorie Logan’s comments were seen as indicating a jump in long-term Treasury yields means that the Fed might not be required to go for further interest rate hikes.
Similar sentiments were echoed by Fed Vice Chair Philip Jefferson who said that a surge in long-term yields could stem from investors perceiving that the economy's underlying momentum is stronger than previously assessed, consequently expecting the Fed to maintain higher interest rates for a longer period. However, this escalation in yields could also be attributed to shifts in investor sentiments regarding risk and uncertainty.
This gave investors’ confidence a boost, sending stocks on a rally. Investors are now looking forward to the September producer price and consumer price data that are scheduled for release later this week. This will give them a clearer picture of the Fed’s future plans with interest rates.
No major economic data was released on Monday.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Stock Market News for Oct 10, 2023
U.S. stocks ended higher on Monday after shaking off early pressures following the deadly Hamas attack on Israel over the weekend as investors digested comments from multiple Fed officials. All the three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.6% or 197.07 points to finish at 33,604.65 points.
The S&P 500 climbed 0.6% or 27.16 points, to close at 4,335.66 points. Energy and industrial stocks were the biggest gainers.
The Energy Select Sector SPDR (XLE) jumped 3.3%, while the Industrials Select Sector SPDR (XLI) rose 1.6%. All the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq gained 0.4% or 52.90 points to end at 13,484.24 points.
The fear-gauge CBOE Volatility Index (VIX) was up 1.43% to 17.70. A total of 8.71 billion shares were traded on Monday, lower than the last 20-session average of 10.68 billion. Advancers outnumbered decliners on the NYSE by a 2.19-to-1 ratio. On the Nasdaq, a 1.03-to-1 ratio favored advancing issues.
Hamas Attack Escalates Fears of Broader Conflict
Wall Street ended higher on Friday but investors’ confidence was low after the opening bell on Monday. Stocks came under pressure in the early trading hours as the Israel-Palestine conflict escalated following the surprise Hamas attack on Saturday.
Israel was caught off guard after militant group Hamas staged an invasion that has so far resulted in the deaths of over 800 Israelis. Hundreds have also been abducted and taken to Gaza. Israel, in retaliation, has been conducting airstrikes on Gaza that have killed another 800 Palestinians.
The surprise attack created panic about a broader conflict as many believe this could impact the energy market, potentially leading to a short-term spike in crude oil prices. However, experts feel the impact could be relatively limited.
On Monday, WTI (West Texas Intermediate) crude oil futures rose 4.3%, reaching to settle at $86.38. International Brent futures saw a rise of 4.2%, reaching $88.15.
Energy stocks went on a rally following the initial panic. Shares of ConocoPhillips ((COP - Free Report) ) jumped 5.6%, while Marathon Oil Corporation ((MRO - Free Report) ) surged 6.3%. shares of Exxon Mobil Corporation ((XOM - Free Report) ) gained 3.5%. Exxon Mobil carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Comments from Fed Officials Boost Investors’ Confidence
The initial losses were pared in the afternoon session as investors digested comments from Federal Reserve officials. Dallas Federal Reserve Bank President Lorie Logan’s comments were seen as indicating a jump in long-term Treasury yields means that the Fed might not be required to go for further interest rate hikes.
Similar sentiments were echoed by Fed Vice Chair Philip Jefferson who said that a surge in long-term yields could stem from investors perceiving that the economy's underlying momentum is stronger than previously assessed, consequently expecting the Fed to maintain higher interest rates for a longer period. However, this escalation in yields could also be attributed to shifts in investor sentiments regarding risk and uncertainty.
This gave investors’ confidence a boost, sending stocks on a rally. Investors are now looking forward to the September producer price and consumer price data that are scheduled for release later this week. This will give them a clearer picture of the Fed’s future plans with interest rates.
No major economic data was released on Monday.