Stocks rose while bonds fell as diplomatic efforts were made to prevent the Israel-Hamas conflict from escalating into a regional conflict. Following last week's rally, oil prices fell.
The S&P 500 gained 1.1%, as traders braced for a slew of earnings reports. Ten-year Treasury yields rose nine basis points to 4.71%. The dollar has weakened. Bitcoin lost 10% of its value after BlackRock said its application for an exchange-traded fund that invests directly in cryptocurrency is still being reviewed. The Israeli shekel has reached an eight-year low.
Wall Street's safe haven bid has waned, with President Joe Biden considering a trip to Israel as part of an effort to keep the war from spreading. After talks with Arab governments, Secretary of State Antony Blinken returned to Israel to meet with Prime Minister Benjamin Netanyahu. Russian President Vladimir Putin spoke with the leaders of Egypt, Syria, Iran, and the Palestinian Authority, and the Kremlin stated that there was "unanimous agreement" on the need for a cease-fire. He spoke with Netanyahu separately.