(Bloomberg) — Stocks fell around the world, while bonds climbed with gold on concern the Israel-Hamas war will escalate into a wider conflict in the Middle East. Oil pulled back after hitting $90 a barrel.
Most Read from Bloomberg
The S&P 500 dropped over 1%, notching its worst week in a month. It breached the 200-day moving average — seen by some chartists as a bearish signal. Wall Street’s “fear gauge” — the VIX — hit the highest since March. US airline shares posted their longest weekly slide in over two years as major carriers dial back forecasts in the face of elevated oil prices and wages.
Read: Bond Market’s Bad Tidings Start to Overwhelm Miracle Stock Rally
Traders continued to seek haven amid the latest geopolitical developments. Treasury yields pared weekly increases that pushed the 10-year rate to almost 5%. Gold edged closer to $2,000 an ounce.
“The ongoing situation in the Middle East has triggered a surge of volatility in the oil and stock markets, compelling investors to re-evaluate their strategies and shift their focus from riskier assets to ‘safer’ investments,” said Fawad Razaqzada, market analyst at City Index and Forex.com.
Hamas released two American citizens who had been held captive in Gaza. Leaders from around the region are heading to Cairo for a Saturday summit on the crisis. Israel’s military said it struck Hamas targets in Gaza overnight. Israel also responded to fire from Lebanon by hitting Hezbollah assets, and evacuated residents near the border. The Iran-backed militant group said it fired guided missiles at several Israeli sites.
Aside from the Middle East crisis, global markets have been whipped around in recent weeks by climbing Treasury yields and growing worries about interest rates staying elevated for longer.
Story continues
Federal Reserve Bank of Cleveland President Loretta Mester said the US central bank is close to wrapping up its tightening campaign if the economy evolves as expected.
Corporate Earnings
Traders also waded through a raft corporate earnings. Of the 86 companies in S&P 500 that have…
..
