Middle East Tensions Stimulate Demand for Risk Avoidance Gold is rising steadily

Middle East Tensions Stimulate Demand for Risk Avoidance

Gold is rising steadily

On Wednesday (October 18th), as Tesla's stock price fell after hours, large exchange traded funds tracking the Nasdaq 100 Index (QQ) lost momentum in the late trading session, while Netflix surged 12% after announcing its financial results. The yield of 10-year treasury bond climbed, breaking 4.9% for the first time since 2007. Gold prices have steadily risen and hit a six week high in US afternoon trading on Wednesday.

The S&P 500 index fell 1.3%, while oil prices rose due to an explosion at a hospital in Gaza, complicating diplomatic efforts to control the Middle East conflict, and Iran intensifying its rhetoric against Israel. Morgan Stanley's decline was the largest since 2020, due to a slowdown in investment banking business leading to a decline in profits. United Airlines Holdings' stock price fell nearly 10% after warning that the war between Israel and Hamas and rising aviation fuel costs would affect profits.

According to FactSet data, more than 10% of companies in the S&P 500 index have reported performance. About 78% of the reported companies exceeded analysts' expectations in terms of performance.