![]() Besides the war in Gaza and oil prices, there are also worries about the effects of workers' strikes across the country and Capitol Hill dysfunction that could result in another U.S. Harker said the Fed can afford to stop hiking rates and see what happens, particularly with so many economic uncertainties out there. High rates and longer-term bond yields knock down prices for all kinds of investments, while also slowing the overall economy. The Fed has pulled its overnight interest rate to the highest level since 2001, up from virtually zero at the start of last year, in hopes of starving painful inflation of its fuel. Philadelphia Fed President Patrick Harker said again Friday that he believes “we are at the point where we can hold rates where they are,” as long as economic and financial conditions continue on their current course. Yields also eased after another official at the Federal Reserve said the central bank may be done hiking its main interest rate following a blistering campaign that began early last year. The yield on the 10-year Treasury fell to 4.63% from 4.70% late Thursday. Worries about the war also sent Treasury yields falling, which often happens when investors head for safer investments during times of stress. While the Gaza region is not a major producer of oil, the fear is that the violence could spill into the politics around the crude market and eventually lead to disruptions in the flow of petroleum. ![]() ![]() Brent crude, the international standard, climbed $4.89 to $90.89 per barrel. Some of the strongest action was in the oil market, where a barrel of benchmark U.S. banking giants at the same time said their profits during the summer were better than feared, which offered hope on Wall Street for an earning reporting season that may deliver the first growth for big companies in a year.Īll the push and pull sent the S&P 500 down by 21.83 points, or 0.5%, to 4,327.78. ![]() Oil prices leaped, and Treasury yields fell after Israel's military ordered the evacuation of northern Gaza ahead of a possible ground invasion, according to the United Nations, which warned of potentially “devastating humanitarian consequences.” But several U.S. stocks mostly fell Friday after fears about war in the Middle East collided in financial markets with hopes for stronger profits at big U.S. ![]()
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