Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks IPOs and placings
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
US close: Stocks erase gains as Gaza violence intensifies, bond yields rise
(Sharecast News) - Rising bond yields weighed over Wall Street equity markets on Tuesday despite a raft of better-than-expected earnings data from bellwether stocks, while an escalation of violence in Gaza continued to rattle investors' nerves. An airstrike on a Gaza hospital on Tuesday afternoon reportedly killed 500 people, according to Palestinian health officials. The news came as the Israeli government continued to prepare forces for a potential ground invasion - though when that offensive would take place is still unknown.
As financial markets watch the situation closely, US president Joe Biden is scheduled to travel to Israel on Wednesday, as attempts at shuttle diplomacy step up a gear. Unconfirmed rumours that UK prime minister Rishi Sunak may also travel to the Middle East in the coming days were also doing the rounds.
Following 1%-plus gains on Monday, US markets broadly finished flat to lower. Stephen Innes, managing partner at SPI Asset Management, said investors were "still on tenterhooks" and the previous session's tentative risk rally was "more of a function of no escalation rather than a broader de-escalation".
After a brief spell in positive territory, stocks had erased gains by the closing bell, with the Dow Jones Industrial Average and S&P 500 finishing flat, and the Nasdaq slipping 0.3%.
US government bonds were out of favour after data showed that domestic retail sales rose 0.7% in September after an upwardly revised 0.8% gain in August and ahead of the 0.3% forecast. Meanwhile, industrial production growth unexpectedly improved to 0.3% last month after no change in August.
The yield on a 10-year US Treasury was up 12.4 basis points at 4.836% in afternoon trade following the data, as expectations rose that the Federal Reserve will choose to keep interest rates higher for longer to cool an overheating economy.
"On the back of the data, market pricing for a December hike was seen increasing to over 40%," said analyst Manoj Ladwa from ARJ Capital. "The Fed had signalled last time around that a further hike this year was likely this year with rates then forecast to stay higher for longer through 2024. Today's data shows that any talk of a consumer slowdown is still premature and, as such, US yields and USD look likely to remain well supported near-term."
With around a tenth of the companies listed on the S&P 500 expected to release quarterly results this week, the focus was firmly on earnings season.
Goldman Sachs, Bank of America and BNY Mellon all beat expectations with their third-quarter results on Tuesday, joining banking peers JPMorgan Chase & Co, Citigroup and Wells Fargo who impressed the market on Friday.
Results from healthcare group Johnson & Johnson and defence manufacturer Lockheed Martin also came in ahead of forecasts, though both stocks fell.
United Airlines reports after the closing bell, while streaming giant Netflix and electric car titan Tesla will be on the agenda on Wednesday with their results.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.