Major stock indexes on the New York stock market were mixed in early trading on the 24th local time. The moves appear to reflect investors sitting on the sidelines as Middle East tensions rise.
As of 9:37 a.m., the Dow Jones Industrial Average on the New York Stock Exchange was up 115.87 points, or 0.22%, at 51,827.52 from the previous day. At the same time, the Standard & Poor's (S&P) 500 was up 10.27 points, or 0.14%, at 7,418.57, while the Nasdaq composite fell 24.42 points, or 0.1%, to 25,113.27.
Growing inflation concerns are shaking the market. The U.S. 10-year Government Bonds yield, the global benchmark, is hovering above 4.7%. International oil prices have jumped more than 10% in a week as the U.S.-Iran back-and-forth enters its 14th day.
At least for now, both international oil prices and bond yields paused after reports that U.S. President Donald Trump proposed a cease-fire to Iran through Iraq, which was rejected. The move seems driven by hopes for possible talks. The Iraqi government denied the reports.
With U.S. big tech entering the second-quarter (April–June) earnings season, starting with Alphabet, Google's parent, and Intel, stock-by-stock volatility is expected to increase.
The Federal Open Market Committee (FOMC) meeting is also ahead. The Federal Reserve will hold the FOMC from July 28 to 29 to discuss the benchmark interest rate. According to the Chicago Mercantile Exchange (CME) FedWatch Tool, federal funds futures traders are pricing a 64.2% chance of a July hold. The probability of a 0.25 percentage point hike is 35.8%. The hike odds have jumped more than 20 percentage points in a week.