Global Tensions Rise as Oil Prices Surge Amid Reports of Imminent Iran Attack
Markets are reeling as reports emerge of an imminent ballistic missile attack by Iran on Israel, citing a senior White House official. This escalation in the Middle East conflict has sent commodity prices soaring and equity prices plummeting. Gold prices are nearing record highs, with spot gold rising 1%, while crude oil has erased losses, jumping 3.7% to above $70 per barrel. Brent crude has also moved up 3.5%.
The news has sent U.S. stocks tumbling, with the Nasdaq leading the declines, down nearly 2%. The S&P 500 has fallen 1.2%, and the Dow has dropped 0.7%. The 10-year Treasury yield has fallen 7 basis points to 3.72%, and the 2-year yield has fallen 5 basis points to 3.60%.
In other news, the Job Openings and Labor Turnover Survey (JOLTS) has revealed that the number of job openings in the U.S. climbed to 8.040 million in August, significantly higher than expected. However, the hires rate dipped to 3.3% in August, while the quits rate declined to 1.9%, its lowest level since June 2020.
Disney has been downgraded by Raymond James due to a more conservative outlook for its Parks division, citing several headwinds that could limit the stock’s upside potential over the next 12-18 months. Boeing is looking to raise at least $10 billion through a share sale to replenish cash reserves exhausted by an ongoing strike.
NIO has hit a new high after announcing record-breaking vehicle deliveries for September and the third quarter of 2024. AI startup Cerebras Systems has filed for an initial public offering, looking to capitalize on surging demand for semiconductors that power AI. Wells Fargo has released its Q4 tactical ideas list, featuring stocks with significant quarterly catalysts that could drive meaningful upside or downside.
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