- Stocks fell and oil rose as Iran escalated its rhetoric against Israel in the aftermath of an explosion at a Gaza hospital, complicating diplomatic efforts to bring the Middle East conflict under control.
- The S&P 500 fell 1.3%, led by losses in large-cap stocks as Treasury yields rose. Tesla fell nearly 5%. Morgan Stanley fell to its lowest level since 2020 as profit fell due to an investment-bank slowdown. United Airlines Holdings fell nearly 10% after warning that the Israel-Hamas conflict and higher jet fuel costs would hurt earnings. West Texas Intermediate crude oil briefly approached $90 per barrel before retreating.
- Traders also combed through Fedspeak and the most recent Beige Book for hints on the central bank's next moves. According to the Federal Reserve's survey of regional business contacts, the outlook for the US economy is stable or may show softer expansion.
- Fed 's Williams stated that rates will need to remain restrictive "for some time" in order to return inflation to the central bank's target. Meanwhile, Fed's Waller stated that policymakers can wait and collect more data before deciding whether the economy requires additional monetary restraint.