Bonds & Stocks
Stocks rebounded around the globe, while Treasuries retreated as as Israel’s ground incursion into Gaza appeared less extensive than some investors had feared. The S&P 500 bounced back from oversold levels. The gauge is still headed toward its third monthly slide — the longest losing streak since March 2020 — hurt by a surge in bond yields, geopolitical concerns and disappointing earnings from some megacaps. Ten-year US yields rose six basis points to 4.89%.
Economy
Despite roaring growth and a resilient job market, more middle-class Americans are worried about the state of the economy than a year ago, a Harris Poll for Bloomberg News has found. One big reason: The rapid increase in interest rates deployed by the Federal Reserve to rein in inflation, which are now expected to remain higher for longer.
World
Israel sent more forces into Gaza as Palestinian authorities in the Hamas-run enclave said the death toll since the war erupted had surpassed 8,000. The International Criminal Court said Israel has clear obligations to follows the laws of conflict. Israeli troops also raided a West Bank city and conducted an airstrike in Syria. Meanwhile, US President Joe Biden and his Egyptian counterpart agreed Palestinians shouldn’t be displaced to Egypt amid rising concern over the humanitarian situation in Gaza, the besieged enclave ruled by Hamas.