Caution Prevailed On Wall Steet After Israel Conducted Limited Strike Targeting Iran

Barry Adams
19 Apr, 2024
New York City

Safe-have assets were in demand after the long-running conflict between Israel and Iran spilled over into public view amid rapidly escalating tensions in the Middle East. 

Israel's limited strike targeted locations deep into Iran's territory after the nuclear-armed nation conducted missile strikes in a retaliatory move. 

However, Israel and Iran appear to be in no mood to step up more attacks for now, after diplomats on both sides worked to lower tensions and limit the conflict from spreading to a regional war. 

The so-called safe-haven assets were in demand, and the U.S. Treasury yields held stable; crude oil prices soared 4% before erasing most of the gains; and gold edged slightly higher in early trading. 

Investors also reviewed the fresh batch of earnings and reacted negatively to Netflix's announcement that it no longer plans to release a paid subscriber count starting in 2025. 

The S&P 500 index and the Nasdaq Composite are set to extend weekly losses for the third week in a row after a week of choppy trading. 

The S&P 500 index and the Nasdaq Composite have fallen nearly 5% from their peaks. 

 

U.S. Indexes and Yields

The S&P 500 index declined 0.1% to 5,014.45, and the Nasdaq Composite decreased 0.3% to 15,550.10. 

The yield on 2-year Treasury notes edged higher to 4.98%, 10-year Treasury notes inched down to 4.59%, and 30-year Treasury bonds edged lower to 4.69%.

WTI crude oil decreased $0.59 to $82.13 a barrel, and natural gas prices decreased 1 cent to $1.74 a thermal unit.

Gold decreased by $0.82 to $2,379.82 an ounce, and silver fell 1 cent to $28.22. 

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.88.

 

U.S. Stock Movers

Intuitive Surgical rose 3.3% to $385.0 after the robotic surgical equipment maker reported better-than-expected quarterly results. 

Western Alliance decreased 3.4% to $53.82 after the regional bank posted weaker-than-expected quarterly results. 

KB Home increased 1% to $61.04 after the home builder said its board of directors announced a new $1 billion stock repurchase plan. 

Netflix declined 5.7% to $571.95 after the online streaming service provider reported better-than-expected quarterly results and added it will stop publishing paid subscriber counts starting in 2025. 

Revenue in the first quarter increased to $9.37 billion from $8.16 billion, net income rose to $2.13 billion from $1.30 billion, and diluted earnings per share advanced to $5.28 from $2.88 a year ago.