TRV - Stocks Dip As Yields Hit 5% Oil Soars Amid Middle East Turmoil: What's Driving Markets Wednesday? | Benzinga
Wall Street tumbled during midday trading, with all major stock indices in the red, and only the energy sector showing gains for the session, while 30-year Treasury yields breached the 5% mark, hitting the highest level in over 17 years.
The recent developments in the Middle East have weighed on risk sentiment after President Joe Biden defended Israel and condemned the ‘other team’ for the attack on the Gaza’s hospital on Tuesday which caused over 500 casualties. The president also pledged “unprecedented package support” for Israel to be approved by Congress as early as this week.
Tech heavyweights, such as Tesla Inc (NASDAQ:TSLA) and Netflix Inc. (NASDAQ:NFLX) will report their third-quarter earnings after the market close.
Meanwhile, Iran’s threat to impose an oil embargo on Israel has reignited a rally in oil prices, with the WTI benchmark up 1.2%. This surge was further propelled by a larger-than-predicted draw in U.S. crude oil inventories last week, with a decrease of 4.491 million barrels compared to the expected 0.3 million.
Cues From Wednesday’s Trading
Both the S&P 500 and the Nasdaq 100 fell 1%, while blue chip stocks in the Dow Jones Industrial Average fell 0.7%. Small caps suffered substantially, with the Russell 2000 index down 1.7%.
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