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Markets Reel as Geopolitical Tensions Spike Oil and Sink Futures

US stock futures fell sharply Monday as escalating conflict between the US, Israel, and Iran rattled global markets and sent investors fleeing risk assets. Dow Jones Industrial Average futures slid more than 500 points, while S&P 500 and Nasdaq 100 futures also dropped over 1%, reflecting heightened uncertainty and renewed volatility.  Oil prices surged in response to the unrest, with Brent crude jumping between 10% and 13% in early trading before stabilizing near the high-$70 range. West Texas Intermediate climbed more than 8%, driven by fears of supply disruptions after attacks near the Strait of Hormuz—a critical passage for global crude shipments.  The geopolitical shockwaves extended across global markets. Asian equities tumbled, gold strengthened, and investors braced for inflationary pressures tied to rising energy costs. The combination of military escalation and fragile market sentiment—already strained by volatility in tech and AI-related stocks—has amplified ...
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U.S. Markets Tumble on Earnings, Bond Yields

U.S. stocks fell on Wednesday, October 25, 2023, as investors digested mixed earnings reports from Microsoft and Alphabet while Treasury yields pushed higher. The Dow Jones Industrial Average dropped 0.32% to 33,035.93 points, the S&P 500 index slid 1.43% to 4,186.77 points, and the Nasdaq composite index plunged 2.43% to 12,821.22 points.

Alphabet shares slid more than 9% after the Google parent beat on earnings and revenue but fell short in its cloud business. Microsoft shares rose 3% after its own double beat showed its bets on AI were paying off for its cloud segment. Other tech giants such as Amazon and Meta also declined ahead of their earnings reports.

The earnings season also coincided with a surge in bond yields, as the Bank of Canada and the U.S. Federal Reserve signaled their readiness to fight inflation by keeping interest rates high. The BoC held its key rate at 5.0%, but lowered its 2023 growth forecast to 1.2%. The Fed is expected to announce its tapering plans next week.

The higher yields weighed on rate-sensitive sectors such as technology and real estate, but boosted energy and financial stocks. The Canadian dollar traded for 79.23 cents US compared with 79.28 cents US on Tuesday.



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