A renewed bout of bond market volatility impacted stock trading, with investors also anticipating earnings from a handful of major technology companies. Oil prices fell as Israel appeared to postpone a larger ground invasion of Gaza.
Following several twists and turns, the S&P 500 closed at its lowest level since May. The index fell for the fifth consecutive session, its longest drop this year, while remaining above the critical 4,200 level. This is a technical support level and represents a 50% retracement of the rally from the lows seen during the March banking crisis. The Nasdaq 100 outperformed, with Microsoft rising ahead of its earnings report and Nvidia rising 3.8% on news that it will use Arm Holdings technology to develop chips that will compete with Intel processors in personal computers. Treasury 10-year yields have fallen from 5% to 4%. The value of the dollar decreased.
