Stocks rose as comments from Federal Reserve officials increased expectations that officials will not raise interest rates this year. Oil prices rose after Hamas' attack on Israel fueled fears of a larger conflict.
Following the recent rise in Treasury yields, Fed Vice Chair Jefferson stated that officials are in a position to "proceed carefully." Earlier in the day, Fed Bank of Dallas President Logan stated that the recent rise in long-term US bond rates may mean that the central bank is less likely to tighten again. The dollar fell slightly. Treasury futures rose as the cash market was closed for Columbus Day.
Energy companies led S&P 500 gains as US crude futures briefly surpassed $87 per barrel. Exxon Mobil Corp. and Chevron Corp. both gained more than 2.7%. Defense firms rallied, with Northrop Grumman rising the most since March 2020 and Lockheed Martin rising 8.9%. Delta Air Lines and American Airlines Group both fell more than 4%.
