Middle East, Markets Up & Rate Hike Prob Down (Patreon)

Despite tensions in the Middle East, stocks are on the rise following more tempered comments from Federal Reserve officials.

The Dow Jones Industrial Average climbed by 203 points, equating to a 0.6% increase. Meanwhile, the S&P 500 elevated by 0.7%, and the Nasdaq Composite, known for its tech concentration, ascended 0.5%. Notably, all these indexes had started the day on a downbeat note.

hough the bond market took a break for Columbus Day, futures related to the 10-Year yield display a decrease from the previous week, standing at 4.67%. With rising yields previously pressuring stocks, this decrease comes as a welcome development.

A significant boost came from the Federal Reserve Vice Chair, Philip Jefferson, who provided a moderate perspective on inflation in a recent talk. He mentioned, "Having raised the federal funds rate target by 525 basis points since early 2022, my perspective is that the FOMC is equipped to tread cautiously in determining the need for any further policy adjustments," while addressing the National Association for Business Economics in Dallas.

Presently, the likelihood of a rate hike in the Fed's upcoming November session is projected at 14.1%, a significant dip from the 27.1% recorded on Friday, as per the CME FedWatch Tool.