American Market Reaction To Russia's Warning To Israel On Attacking Iran: Dow Jones, S&P 500, Nasdaq On Oct 11

The US market shrugged off the tensions in Middle East that seems to be taking new twists and turns each day. On 11th October, it is reported that Russia's President Vladimir Putin has warned Israel over their possible plans for attacking Iran's nuclear facility in Tehran. Also, market recovered from the hotter-than-expected US CPI inflation data. Dow Jones, S&P500 and Nasdaq Composite closed the week on a positive note.

President Benjamin Netanyahu-backed government has vowed that Israel will retaliate against Iran's October 1st barrage of 200 missile attacks. However, the details of the retaliation is yet to be known. And that has kept the tensions in Middle East jittery.

Possible causes of Israel's retaliation on Iran, as per reports are, the nuclear facilities of the Islamic country, or the latter's oil field. However, how, when and what is yet unknown.

And it looks like Russia's Putin, who has invaded Ukraine since February 2022, has a message for Israel-for the first time at Turkmenistan's Ashgabat Putin met with Iranian President Masoud Pezeshkian on Friday.

Putin and Pezeshkian discussed matters related to the Middle East war, alongside signing a $1.7 billion export deal for drones and other artilleries.

The Russian president openly stated that he wished to create a new world order for allies of Moscow, to counter the Western countries. While emphasizing supporting Iran, Putin warned Israel stating, "Don't You Dare Attack Iran."

Meanwhile, Israel continues to intensify its rampage in Lebanon, combating Hezbollah fighters, alongside tackling Hamas to continue on its hostage rescue mission.

Amidst this, in the latest development, Israel has received condemnation by European countries leaders over their missile attacks that reached the UN bases in Lebanon. Italy, France and Spain have released a joint statement, calling Israel's strikes on UN peacekeepers, "unjustifiable" and a "serious violation". The three European countries have also called for a ceasefire in Lebanon.

Additionally, sirens were heard in Israel owing to a hostile aircraft infiltration. Not just that matters in Red Sea are also intense, with the latest update revealing that a tanker holding the Liberia flag was hit twice by Iran's proxy Houthi militants of Yemen.

US Market This Week:

Dow Jones: The Dow Jones Industrial Average or DJIA ended at 42,863.86, surging by 409.74 points or 0.97% on October 11. In the entire trading week, the index jumped by 574.35 points or 1.4%.

S&P 500: The index closed at 5,815.03, up by 34.98 points or 0.61%. Overall, in the week, the index climbed by 77.23 points or 1.4%.

Nasdaq Composite: The tech-heavy index finished at 18,342.94, soaring by 60.89 points or 0.33%. The index's weekly performance is with the upside of 262.82 points or 1.45%, outperforming its counterparts in percentage terms.

Talking about the latest performance, Trading Economics data said that US stocks rallied on Friday, powered by strong earnings reports from major banks, setting an optimistic tone for the third-quarter earnings season. The S&P 500 and the Dow Jones both hit new highs, gaining 0.6% and 1%, respectively buoyed by impressive earnings results from JPMorgan (4.4%) and Wells Fargo (5.6%). Despite Tesla's 8.8% drop due to its underwhelming robotaxi event, the tech-heavy Nasdaq managed to close 0.1% higher.

Trading Economics data further said, this positive momentum was further supported by economic data, where unchanged wholesale inflation indicated progress towards controlling inflation, while a hot inflation on Wednesday kept uncertainty around the Fed's future rate cuts.