Home Business Dow Rises 350 Points; Schwab, Pfizer Stocks in Focus

Dow Rises 350 Points; Schwab, Pfizer Stocks in Focus

by Mark Mendoza

The demand for safe-haven assets subsided on Monday as investors drove stocks higher and bond prices lower. This shift in sentiment came as investors hoped that the Israel-Hamas conflict would not have a significant impact on the global economy. However, tensions in the Middle East remained high, with Israeli forces striking Gaza on Sunday and intensifying fighting along Israel’s northern border with Lebanon.

Despite the ongoing conflict, energy prices did not experience a notable jump, which relieved investors who had feared such a development. Additionally, the possibility of the Federal Reserve not raising interest rates again this year provided further reassurance. Some Fed officials have recently indicated that further policy changes may not be necessary, citing the recent increase in longer-term U.S. Treasury yields. This week, a number of officials are scheduled to deliver public remarks, offering investors more insight into their thinking.

Following a slide on Friday, stock indexes rebounded on Monday. The Dow, S&P 500, and Nasdaq all saw gains of around 1%. The positive performance in stocks was broad-based, although the energy sector lagged slightly behind others. Brent crude futures fell to just above $90 a barrel.

Meanwhile, Treasury yields rose, led by longer-term yields. The 10-year yield reached 4.714% compared to 4.628% on Friday. Yields held onto their gains even after a New York state manufacturing index fell in October, albeit not as much as economists had expected.

In other news, Lululemon Athletica’s stock saw a 10% increase, just two days before it is set to join the S&P 500 index. Schwab, which reported its latest results, also experienced a climb in its stock price.

Pfizer shares also rose despite the company slashing its sales guidance late on Friday. The pharma giant cited declines in expected sales of its Covid-19 vaccine and treatment but also announced plans for cost cuts. On the other hand, shares of other vaccine makers were lower, with Moderna on track for its lowest close since late 2020.

Overall, the shift away from safe-haven assets and the positive performance of stocks reflect investors’ optimism regarding the Israel-Hamas conflict’s impact on the global economy. The upcoming remarks from Federal Reserve officials will provide further clarity on future policy changes, which could also influence market dynamics.

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