Daily global market review

The stock market commenced the day with a decline as Israel's declaration of war on Hamas, following a surprise attack over the weekend, rattled investors. However, as the trading day progressed, stocks staged a rebound, closing near their daily highs. This rally, however, occurred on relatively light trading volume, reflecting the uncertainty surrounding the Israel-Hamas conflict.

Investors sought refuge in Treasury futures, despite the Treasury market being closed for Columbus Day, as a reaction to the news. This movement, along with the dollar's retreat from early gains and the stock market's resilience to selling attempts, contributed to the afternoon rally.

The stock market's ability to weather the storm likely triggered short-covering activity and encouraged additional buying, as many believed that stocks were oversold and due for a rebound.

Oil prices responded to the Israel-Hamas conflict, with concerns of a potentially wider regional conflict pushing prices higher. However, this increase in oil prices did not carry the sense of a worst-case scenario, as WTI crude oil futures rose by 4.1% to reach $86.42 per barrel.

Within the S&P 500, the energy sector posted a 3.5% gain, while the industrials sector followed closely with a 1.6% increase. The industrials sector benefited from substantial gains in its defense-related components, including Northrop Grumman, L3Harris, and Lockheed Martin.

Despite the lack of significant U.S. economic data during the day, the economic calendar for Tuesday includes the release of the September NFIB Small Business Optimism report at 6:00 a.m. ET, followed by the August Wholesale Inventories report at 10:00 a.m. ET.

In the United States, the Dow Jones Industrial Average closed at 33,604.65, showing a positive change of 197.07 points, equivalent to a 0.59% increase. Similarly, the S&P 500 index reached 4,335.66, with a gain of 27.16 points, representing a 0.63% rise. The NASDAQ Composite index stood at 13,484.24, up by 52.90 points, marking a 0.39% increase. Meanwhile, the VIX, a measure of market volatility, reached 17.70, reflecting a 1.43% increase. The Russell 2000 index closed at 1,755.99, showing a positive change of 10.44 points, equivalent to a 0.60% increase. In Canada, the S&P/TSX Composite index remained unchanged at 19,246.07, while the S&P/TSX 60 index also stayed flat at 1,154.14.

In Brazil, the BOVESPA index closed at 115,156.07, showing a gain of 986.44 points, representing a 0.86% increase. In Chile, the S&P IPSA ended at 5,659.29, while in Mexico, the S&P/BMV IPC index experienced a decrease of 369.35 points, marking a 0.74% decline. Moving to Europe, the STOXX Europe 50 index closed at 3,884.21, with a decrease of 4.53 points, equivalent to a 0.12% decrease. The STOXX Europe 600 index reached 443.79, showing a decline of 1.14 points, reflecting a 0.26% decrease. In the United Kingdom, the FTSE 100 index closed at 7,492.21, with a decrease of 2.37 points, equivalent to a 0.03% decline. In Italy, the FTSE MIB index stood at 27,682.06, showing a decrease of 128.55 points, marking a 0.46% decline. Similarly, in France, the CAC 40 index closed at 7,021.40, with a decline of 38.75 points, representing a 0.55% decrease. In the Asian markets, the Nikkei 225 index in Japan remained unchanged at 30,994.67, while the Hang Seng index in Hong Kong closed at 17,517.40, showing a positive change of 31.42 points, equivalent to a 0.18% increase. The Shanghai Composite index in China reached 3,096.92, with a decrease of 13.55 points, reflecting a 0.44% decline. In Australia, the S&P/ASX 200 index remained unchanged at 6,970.20. Likewise, the KOSPI index in South Korea and the Taiwan SE index in Taiwan ended at 2,408.73 and 16,520.57, respectively.

In India, several indices exhibited varying performances during the trading session. The "BSE SmallCap" and "NIFTY Smallcap 100" indices registered the most substantial losses, with declines of -1.72% and -1.78% respectively, reflecting a bearish sentiment in smaller-cap stocks. The "BSE Sensex," representing larger-cap stocks, experienced a relatively moderate decrease of -0.73%, while the "Nifty 500" index displayed a slightly larger decline of -0.96%. Similarly, the "S&P BSE-100" and "S&P BSE-200" indices both observed reductions of -0.81% and -0.88% respectively, indicating broader market weakness. Furthermore, the "S&P BSE ALLCAP" index dropped by -1.04%, encompassing stocks of all capitalization sizes. Among the more specific indices, the "Nifty 50" index declined by -0.72%, and the "Nifty 50 USD" index showed a decrease of -0.74%. The mid-cap segment experienced losses with the "Nifty Midcap 150" and "Nifty Midcap 50" indices falling by -1.34% and -1.11% respectively. The "Nifty Next 50" index exhibited a substantial drop of -1.21%, and the "Nifty Smallcap 250" index displayed a decline of -1.63%, highlighting weaker performances in mid and small-cap segments.

• Palantir Technologies Inc. Class A (PLTR) is currently priced at 17.61 with a 1.00 increase, representing a 6.02% change, and a trading volume of 106M shares. Its 52-week range is between 5.92 and 20.24.
• Tesla, Inc. (TSLA) is trading at 259.67 with a decrease of 0.86, reflecting a 0.33% change, and a trading volume of 101M shares. Its 52-week range spans from 101.81 to 299.29.
• Rivian Automotive, Inc. Class A (RIVN) has a current price of 18.78, down by 0.14, resulting in a 0.74% change, with a trading volume of 52M shares. Its 52-week range is 11.68 to 36.45.
• American Airlines Group Inc. (AAL) is priced at 12.24, showing a decrease of 0.52, which is a 4.08% change, along with a trading volume of 51M shares. Its 52-week range stretches from 11.79 to 19.08.
• Apple Inc. (AAPL) has a current price of 178.99, indicating an increase of 1.50, equal to a 0.85% change. It has a trading volume of 42M shares, and its 52-week range lies between 124.17 and 198.23.
• NVIDIA Corporation (NVDA) is currently priced at 452.73, with a decrease of 4.89, resulting in a 1.07% change. It has a trading volume of 41M shares, and its 52-week range spans from 108.13 to 502.66.
• Bank of America Corp (BAC) is trading at 26.31, showing an increase of 0.24, representing a 0.92% change. It has a trading volume of 40M shares, and its 52-week range is between 25.46 and 38.60.
• Advanced Micro Devices, Inc. (AMD) is currently priced at 106.97, with a decrease of 0.27, indicating a 0.25% change. It has a trading volume of 40M shares, and its 52-week range lies between 54.57 and 132.83.
• NIO Inc. Sponsored ADR Class A (NIO) is trading at 8.34, showing a decrease of 0.38, which is a 4.36% change. It has a trading volume of 39M shares, and its 52-week range spans from 7.00 to 16.18.
• Amazon Inc. (AMZN) is currently priced at 128.26, with a 0.30 increase, reflecting a 0.23% change. It has a trading volume of 39M shares, and its 52-week range is between 81.43 and 145.86.
• Turnstone Biologics Corp. (TSBX) is currently priced at 3.58 with a 1.24 increase, representing a 52.99% change, and a trading volume of 310K shares. Its 52-week range is between 1.83 and 13.20.
• M-tron Industries Inc (MPTI) has a current price of 24.25, up by 5.60, resulting in a 30.03% change, with a trading volume of 440K shares. Its 52-week range stretches from 7.99 to 25.16.
• Jin Medical International Ltd. (ZJYL) is priced at 17.75, showing an increase of 3.98, which is a 28.90% change, and it has a trading volume of 121K shares. Its 52-week range lies between 4.84 and 29.82.
• Medigus Ltd Sponsored ADR (MDGS) is currently priced at 4.37, with an increase of 0.86, indicating a 24.50% change, and a trading volume of 190K shares. Its 52-week range spans from 3.28 to 8.80.
• Biodexa Pharmaceuticals plc Sponsored ADR (BDRX) is trading at 4.79, showing an increase of 0.88, representing a 22.51% change. It has a trading volume of 139K shares, and its 52-week range is between 3.51 and 697.60.
• Lithium Americas (Argentina) Corp. (LAAC) is currently priced at 7.94, with a 1.34 increase, resulting in a 20.30% change, and a trading volume of 3M shares. Its 52-week range is between 5.07 and 8.79.
• Freeline Therapeutics Holdings Plc Sponsored ADR (FRLN) has a price of 3.42, with a 0.57 increase, equal to a 20.00% change, and a trading volume of 115K shares. Its 52-week range stretches from 2.11 to 12.00.
• Indonesia Energy Corporation Limited (INDO) is trading at 4.07, with a 0.67 increase, reflecting a 19.71% change. It has a trading volume of 3M shares, and its 52-week range lies between 3.12 and 8.30.
• Chijet Motor Company, Inc. (CJET) is priced at 2.41, showing an increase of 0.39, which is a 19.31% change, with a trading volume of 108K shares. Its 52-week range spans from 1.25 to 13.02.
• enVVeno Medical Corporation (NVNO) is currently priced at 5.73, with an increase of 0.86, indicating a 17.54% change, and a trading volume of 216K shares. Its 52-week range is between 2.51 and 6.49.

In the world of cryptocurrencies, the Nasdaq Crypto Index closed at 1,547.88, experiencing a decline of 43.10 points, equivalent to a 2.71% decrease. Bitcoin, one of the most prominent cryptocurrencies, stood at 27,584.00, with a decrease of 361.00 points, marking a 1.29% decline. Similarly, Ether, another major cryptocurrency, reached 1,578.50, showing a decline of 55.10 points, reflecting a 3.37% decrease. Litecoin closed at 63.07, with a decrease of 2.30 points, equivalent to a 3.52% decline. XRP, another cryptocurrency, stood at 0.50, experiencing a decrease of 0.02 points, representing a 2.90% decline.

Turning to bonds and interest rates, the 3 Month Treasury yielded 5.348%, with a slight increase of 0.005%. Meanwhile, the 2 Year Treasury yielded 5.075%, showing a decrease of 0.004%. The 5 Year Treasury yielded 4.758%, experiencing a decrease of 0.002%. The 10 Year Treasury yielded 4.802%, with a slight increase of 0.011%. Finally, the 30 Year Treasury yielded 4.973%, also showing a slight increase of 0.013%.

In the realm of currencies, the Euro to US Dollar exchange rate closed at 1.0567 equivalent to a 0.21% decline. The British Pound to US Dollar exchange rate reached 1.2240, showing a minor increase, marking a 0.31% rise. The US Dollar to Canadian Dollar exchange rate stood at 1.3591, experiencing a decrease of 0.61% decline. The US Dollar to Swiss Franc exchange rate closed at 0.9061, with a minor decrease, representing a 0.38% decline. Finally, the US Dollar to Japanese Yen exchange rate reached 148.5355, showing a decrease of 0.57 points, marking a 0.38% decline.

Several commodity and energy indices showed positive gains during the trading session. The Bloomberg Commodity index rose by 1.20%, with a value of 235.32. The UBS Bloomberg CMCI increased by 1.06% to reach 1,530.62, while the Reuters/Jefferies CRB index gained 1.20% with a value of 316.19. The Rogers International index showed a rise of 1.32%, reaching 3,821.89. In contrast, the S&P GSCI index displayed a more modest increase of 0.59%, closing at 3,549.11 on October 6, 2023.

Among the energy commodities, WTI Crude Oil (Nymex) experienced a significant surge of 4.40%, reaching $86.43 per barrel for the November 2023 contract. Brent Crude (ICE) also rose by 4.24%, with a price of $88.17 per barrel for the December 2023 contract. RBOB Gasoline (Nymex) increased by 2.12% to reach 223.86 USd/gallon for the November 2023 contract. Natural Gas (Nymex) showed a gain of 1.32%, reaching $3.38 per MMBtu for the November 2023 contract. Heating Oil (Nymex) surged by 2.61%, closing at 297.65 USd/gallon for the November 2023 contract.

In the precious and industrial metals sector, Gold (Comex) rose by 1.60%, with a price of $1,874.80 per troy ounce for the December 2023 contract. Silver (Comex) increased by 1.37%, reaching $22.02 per troy ounce for the December 2023 contract. Copper (Comex) showed a gain of 0.87%, with a price of 365.90 USd/pound for the December 2023 contract. Platinum Spot displayed a rise of 1.01%, closing at $890.44 per troy ounce.

In the agriculture sector, Corn (CBOT) experienced a decrease of 0.76%, with a price of 488.25 USd/bushel for the December 2023 contract. Wheat (CBOT) increased by 0.66%, reaching 572.00 USd/bushel for the December 2023 contract. Cocoa (ICE) declined by 0.52%, with a price of $3,435.00 per metric ton for the December 2023 contract. Cotton #2 (ICE) showed a decrease of 0.21%, closing at 86.96 USd/pound for the December 2023 contract. Live Cattle (CME) decreased by 0.71%, with a price of 185.35 USd/pound for the December 2023 contract.

Tomorrow:

At 6:00 AM ET, the NFIB Small Business Optimism Index will be published. This index is expected to have a low impact.

At 10:00 AM ET, the Preliminary Wholesale Inventories report will be released, focusing on the month-over-month change. This event is also expected to have a low impact, as it is a preliminary release.

• Short-Term Market Volatility: The conflict in Israel has triggered a risk-off sentiment in the stock market, with U.S. equities giving back some of the gains from the previous week's strong jobs report. In the short term, market volatility is likely to persist as uncertainty surrounding the conflict remains high. Investors may continue to react nervously to developments in the region.
• Impact on Oil Prices: The conflict in Israel has led to a notable increase in oil prices, with a potential upward pressure on crude oil prices in the immediate term. However, the broader impact on oil prices will depend on factors like supply disruptions and potential cuts by OPEC+ producers in response to the conflict. Oil prices may remain a focal point for market watchers.
• Flight to Safety: Geopolitical uncertainties often lead to a flight to safety, typically involving investments in U.S. Treasuries. While the U.S. bond market is closed on Monday, it is anticipated that when it reopens, there may be increased demand for Treasuries, potentially pushing interest rates down temporarily as investors seek safer assets.
• Return to Focus on Inflation and Fed Policy: Despite the current geopolitical concerns, the data suggests that market attention is likely to return to inflation trends and Federal Reserve policy decisions in the coming days. The recent rise in interest rates and expectations of "higher for longer" Fed policy rates have been significant market drivers. A central focus will be on the upcoming U.S. consumer price index (CPI) report scheduled for Thursday, which could influence market sentiment and policy outlook.
• Anticipated Market Resilience: While geopolitical events can trigger short-term market reactions, historical patterns suggest that market responses tend to be temporary. The data implies that, over time, markets may regain focus on broader economic fundamentals and monetary policy.
• Potential for Slower Economic Growth: The data indicates that rising interest rates could eventually have a slowing effect on economic growth in the coming quarters. This could put downward pressure on longer-term interest rates as well, especially if evidence suggests that consumer prices are trending downward.