XOM - S&P 500 Nasdaq Set For Bleak Start To Week As Middle East Tensions Dampen Risk-On Mood: Earnings Inflation Data In Focus | Benzinga
The market may open the week on a cautious note due to escalating tensions in the Middle East caused by violent rocket attacks from the Palestinian militant group Hamas on Israel. Israel’s determination to respond to these attacks has dented risk appetite. However, gains in energy stocks and defense contractors could partially offset the negative sentiment.
Additionally, traders are bracing for the start of the third-quarter reporting season and closely monitoring inflation data scheduled for the week, which could introduce an element of caution.
Cues From Last Week’s Trading:
Last week, the market saw a series of fluctuations as traders reacted to various developments. The major stock indices experienced a mix of gains and losses before closing the week ending Oct. 6 with mixed results. Concerns about rising interest rates persisted throughout the week, leading to bond yields reaching their highest levels in 16 years. Surprisingly, traders responded positively to a strong monthly jobs report released on Friday, possibly driven by oversold conditions and anticipation of the upcoming earnings season.
Tech stocks outperformed, with the Nasdaq Composite posting a weekly gain of over 1.50%, marking its second consecutive week of gains. The S&P 500 Index also broke a five-week losing streak by advancing during the week. However, small-cap stocks faced selling pressure, with the Russell 2000 Index in negative territory for the year-to-date period.
US Index Performance In Week Ended Oct. 6
Index Performance (+/-) Value
Nasdaq Composite +1.60% 13,431.34
S&P 500 ...