Apr 17, 2024 (MENAFN via COMTEX) --
(MENAFN) The US stock market witnessed a notable downturn in trading activity yesterday, as an initial surge gave way to declines fueled by a potent combination of factors. Despite an optimistic start fueled by a robust retail sales report for March, buoying hopes for economic recovery, the market soon faltered under the weight of escalating geopolitical tensions between Iran and Israel and a surge in Treasury yields.
Following the Standard & Poor's 500 index's rebound from its largest single-day percentage decline in over two months during the previous session, stocks initially opened with modest gains. The encouraging retail sales data, which surpassed expectations for March, contributed to this early positivity. Additionally, the release of quarterly results from financial giants like Goldman Sachs provided a further boost, momentarily shoring up investor sentiment.
However, this positive momentum was short-lived as concerns regarding potential military conflicts between Israel and Iran intensified. Moreover, US Treasury yields surged, with the benchmark 10-year bond reaching its highest level since November. These developments sparked apprehension among investors, prompting a swift reversal in market sentiment and leading to broad-based selling across equities.
Preliminary data revealed significant losses across major indices by the end of the trading day. The Standard & Poor's 500 index retreated by as much as 1.21 percent, shedding 61.79 points to close at 5,061.62 points. The Nasdaq Composite Index experienced a more pronounced decline, falling by 1.79 percent or 289.93 points to settle at 15,885.17 points. Similarly, the Dow Jones Industrial Average saw a decrease of 0.66 percent, or 250.63 points, ending the day at 37,735.24 points.
The convergence of robust retail sales figures, geopolitical tensions, and surging Treasury yields underscores the delicate balance influencing market dynamics. Investors continue to navigate uncertainties surrounding economic recovery and geopolitical risks, with heightened volatility amplifying the importance of monitoring global developments and their potential impact on financial markets.â??
MENAFN17042024000045015682ID1108104756
COMTEX_451004794/2604/2024-04-17T19:55:03
