In the US market on Monday (October 16), the stock market rose, and traders waited for a large number of corporate earnings reports, and were not satisfied with the rise in treasury bond bond yields.
As of press release, the Dow Jones Industrial Average rose 0.91%, the Standard&Poor's 500 Index and the Nasdaq Composite Index rose 1.09% and 1.15% respectively.
On Monday, the Dow Jones index rose by over 2%. All 11 sectors of the S&P 500 Index saw gains in intraday trading.
This week's financial reporting season is approaching, with 11% of companies in the S&P 500 expected to report results. Some well-known brands that emerged this week include Johnson&Johnson, Bank of America, Netflix, and Tesla.
As yields and oil prices rise, inflation remains high, and conflicts in the Middle East ensue, some on Wall Street are preparing to face more volatility before the end of the year. But Barclays analyst Ajay Rajadhyaksha said that focusing on profitability and how the Federal Reserve will handle interest rates can bring optimism to investors in the short term.
Over the weekend, the Israeli military continued to urge residents to evacuate northern Gaza due to widespread expectations of a ground invasion. At the same time, Chuck Schumer, the majority leader of the US Senate and a New York Democrat, stated on Sunday that the Senate will strive to quickly promote a military aid plan to assist Israel in confronting Hamas.
The yield of 10-year US treasury bond bonds rose nearly 9 basis points to 4.698% on Monday, while oil prices fell as investors analyzed the latest news of the war.
Before Monday's stock market rally, the stock market had a mixed week. The Standard&Poor's 500 Index and the Dow Jones Industrial Average rose 0.5% and 0.8% for the second consecutive week. The Nasdaq Composite Index fell by approximately 0.2% last week.
Aoifinn Devitt, Chief Investment Officer of Moneta Group, said: "Last week was clearly a shocking response to geopolitical surprises." "We are normalizing the turbulence and taking it into account, and then we will return to fundamentals
Due to the escalating conflict in the Middle East, which has made investors nervous and anxious, gold reflects a safe haven attribute. After a significant decline in the Eurasian period, the gold price is currently trading at $1920.61 per ounce, with a daily decline of -0.62%.
Kim Wyckoff, senior analyst at Kitco Metals, said: "We have only seen some healthy consolidation in recent gains, but short-term futures traders have engaged in some normal profit taking." "The geopolitical situation in the Middle East is very severe, and I believe that gold prices will rise sideways in the coming weeks, and $2000 is not impossible
Gold has been used as a safe investment during periods of political and financial uncertainty. Since falling to a seven month low on October 6th, it has risen by over $100 due to the 10th day of the conflict between Israel and Hamas, and the influx of safe haven funds.
US officials have warned that the war between Israel and the radical group Hamas may escalate as US warships head towards the region as the conflict between Israel's northern border and Lebanon intensifies.
As investors await further news of the war between Israel and Hamas, Federal Reserve Chairman Powell's speech later this week will also be closely monitored to further clarify the US interest rate path.
Next, gold traders will focus on US retail sales data for September, which is expected to grow by 0.2%. On Wednesday, China will release its third quarter gross domestic product (GDP), retail sales, and industrial production data. Traders will gather clues from these events and seek trading opportunities around the gold price.
