Janet Yellen Warns Of Escalation In Israel-Hamas Conflict: Oil, Gold, VIX Spike As Markets Turn Risk-Off
Portfolio Pulse from Piero Cingari
US Treasury Secretary Janet Yellen warned of escalating tensions in the Israel-Hamas conflict, emphasizing the need to prevent a broader conflict. The warning came amid the annual meetings of the International Monetary Fund and World Bank. The conflict has overshadowed other issues such as debt relief and climate change financing. The escalating conflict has impacted global markets, with the CBOE Volatility Index spiking over 18%. Gold, tracked by the SPDR Gold Trust, rallied by 3%, and oil prices surged by 4.6%. Bonds, tracked by the iShares 20+ Year Treasury Bond ETF, rose 1.6%, while the SPDR S&P 500 ETF Trust and the Invesco QQQ Trust experienced losses.
October 13, 2023 | 8:02 pm
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NEGATIVE IMPACT
The Invesco QQQ Trust (QQQ) faced heavier losses, down 1.2% amid escalating tensions in the Israel-Hamas conflict.
Geopolitical uncertainty often leads to stock market losses as investors move away from riskier assets. The escalating Israel-Hamas conflict has led to a fall in the price of the Invesco QQQ Trust (QQQ).
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
The SPDR S&P 500 ETF Trust (SPY) fell 0.6% amid escalating tensions in the Israel-Hamas conflict.
Geopolitical uncertainty often leads to stock market losses as investors move away from riskier assets. The escalating Israel-Hamas conflict has led to a fall in the price of the SPDR S&P 500 ETF Trust (SPY).
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
The SPDR Gold Trust (GLD) rallied by 3% as investors turned to gold as a safe-haven asset amid escalating tensions in the Israel-Hamas conflict.
In times of geopolitical uncertainty, investors often turn to gold as a safe-haven asset. The escalating Israel-Hamas conflict has increased demand for gold, leading to a rally in the price of the SPDR Gold Trust (GLD).
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
The iShares 20+ Year Treasury Bond ETF (TLT) rose 1.6% as investors sought protective hedges amid escalating tensions in the Israel-Hamas conflict.
In times of geopolitical uncertainty, investors often turn to bonds as a protective hedge. The escalating Israel-Hamas conflict has increased demand for bonds, leading to a rise in the price of the iShares 20+ Year Treasury Bond ETF (TLT).
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100