Tensions in Middle East and Earnings Reports Affect Stock Market

Middle East tensions and corporate earnings impact stock market. Get insights on today's market movements and their potential implications.

Oct 18, 2023 - 10:03
Oct 18, 2023 - 10:04
Tensions in Middle East and Earnings Reports Affect Stock Market
Tensions in Middle East and Earnings Reports Affect Stock Market

Today, the stock market had a bit of a bumpy ride. There were worries about problems in the Middle East, and some companies didn't make as much money as expected.

The Dow Jones Industrial Average (^DJI) went down by a little more than 0.2%. The S&P 500 (^GSPC) also dropped, this time by almost 0.5%. The Nasdaq Composite (^IXIC), which is all about technology, fell by 0.3%. This means that people who invest in these companies might be feeling a bit uncertain.

Something happened in the Middle East that made people worried. Israel and Palestine, two places in the Middle East, started blaming each other for an explosion at a hospital in Gaza. Then, President Joe Biden went to Israel. But a meeting he was supposed to have with other important leaders got canceled because of the explosion. President Biden said something that made people worry that there might be even bigger problems in the region.

Oil, which is something we use a lot, got more expensive. One reason is because Iran, a country in the Middle East, said that other countries should stop trading with Israel. This made the price of crude oil (CL=F) go up to $88 for a barrel. Brent crude (BZ=F) was even higher at $91 for a barrel.

When oil prices go up, it can make things more expensive for everyone. This is something that people who decide about interest rates at big banks like the Federal Reserve think about. They have to decide if they need to change interest rates to keep the economy stable.

Yesterday, the stock market didn't change much after people bought a lot of things in stores. Because of this, some people think that the Federal Reserve might decide to change interest rates soon.

Later in the day, two big companies, Tesla and Netflix, said how much money they made. People were very interested in this because they wanted to know if these companies are doing well, especially with interest rates going up.

One company, ASML, which makes machines for computer chips, said that they might not sell as many machines in the future. They think this might happen because of some economic uncertainty.

Another company, Nvidia, which also makes computer chips, didn't do as well after the US government said they can't sell some of their special chips to China. However, there might be some exceptions to this rule.

So, as you can see, a lot of things happened in the stock market today. Problems in the Middle East and how much money big companies make can make the market go up and down. It's like a big roller coaster ride for people who invest in the stock market.

Also Read: New US Chip Export Restrictions Send Nvidia Stocks Tumbling

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