UUP - US Stocks Falter Oil Gold Rally As Israel-Hamas Conflict Escalates: What's Driving Markets Friday? | Benzinga
Risk aversion intensified during Friday’s morning trading, with stocks taking a sharp downturn while gold and oil rallied in the wake of heightened tensions in the Middle East.
Israel has ordered the evacuation of more than 1 million people from North Gaza to the southern part of the Gaza Strip as the military prepares to besiege the city. Tensions are rising on the northern front, with clashes between Hezbollah and Israeli forces along the Israeli-Lebanese border.
On the data front, the University of Michigan Consumer Sentiment index experienced a concerning decline in October, accompanied by an unexpected increase in inflation expectations.
Banks reported third-quarter earnings that exceeded expectations Friday; stock reactions were subdued due to deteriorating overall risk sentiment.
Gold and oil emerged as top-performing assets on Friday, capitalizing on the increasing geopolitical risks in the Middle East. The VanEck Gold Miners ETF (NYSE:GDX) rose 4.6% on the session, the largest daily jump since July.
The CBOE Volatility Index, or VIX, a key fear gauge on the market, rose over 22% on its strongest day in 2023.
Cues From Friday’s Trading:
The S&P 500 fell 0.6%, while the tech-heavy Nasdaq 100 had the sharpest drop of 1.2%.
Blue-chip stocks in the Dow Jones Industrial Average held steady, while small ...