US Market Reaction To Yahya Sinwar's Death Amid Israel-Iran Row; Big Rally In DJIA, Nasdaq On Friday, Oct 18

The US market witnessed sharp buying sentiment, as investors cheered the impressive earnings of tech player Netflix. American indices also took comfort in hopes of war ending in Hamas after the mastermind Yahya Sinwar's death by IDF, while Israel continues its heavy bombardment in Lebanon against Hezbollah. After Sinwar's death, both Hamas and Hezbollah have vowed more war.

Nonetheless, the S&P 500 index continued a six-consecutive winning streak. While Dow Jones touched a new record high, and that of Nasdaq outperformed its counterparts.

US Market On Friday, October 18:

Dow Jones: The Dow Jones Industrial Average or DJIA index ended at 43,275.91, up by 36.86 points or 0.085%. The index had touched a new lifetime high of 43,325.09 during trading hours.

S&P 500: The index climbed to touch an intraday high of 5,872.17, which was near its record high of 5,878.46. The index broadly ended at 5,864.67, up by 0.40%.

Nasdaq Composite: The tech-heavy index outperformed its counterparts by ending at 18,489.55, up by 0.63%. During the trading session, the index touched an intraday high of 18,524.33, which was over 140 points away from its all-time high of 18,671.07.

According to Trading Economics, US stocks closed higher on Friday, led by strong tech gains following Netflix's upbeat earnings report. The S&P 500 rose 0.3% and the Dow finished slightly higher, both marking a fresh record, while the Nasdaq 100 gained 0.7%.

The Trading Economics data pointed out that Netflix surged 11% after delivering better-than-expected Q3 earnings, revenue, and subscriber growth. Also, Shares of Apple rose 1.2% after an industry report showing a surge in China iPhone sales. Nvidia (0.7%), Amazon (0.7%) and Alphabet (0.3%) also finished in the green. However, Procter & Gamble was slightly lower after missing sales expectations, and American Express dropped 3.1% due to lower-than-forecasted revenue.

For the week, Trading Economics data revealed that the S&P 500 gained 0.2%, the Dow Jones advanced 1.2% to book their sixth consecutive weekly gain and the longest streak in 2024, while the Nasdaq 100 lost over 0.7%.

Amidst the tensions between Israel and Iran, in a major blow to the Islamic country, Hamas has confirmed the death of their leader Yahya Sinwar who was said to be the mastermind behind the October 7th massacre in Israel.

Meanwhile, Hezbollah has reportedly launched rockets in Haifa, the northern town of Israel, in the name of their deceased leader Hassan Nasrallah who was assassinated in early October.

Moreover, US President Joe Biden has stated that there is a possibility to work towards a ceasefire in Lebanon, however, the ceasefire in Gaza could be harder to achieve. He also revealed that he is aware of how and when Israel plans to retaliate against Iran's military infrastructure. However, Biden did not provide details about the secret plan of Israel.

Further, Italy's Prime Minister Georgia Meloni stated that she plans on having a call with Israel's PM Benjamin Netanyahu during her visit to Lebanon, which will be followed by in Jordan.

Both Hamas and Hezbollah have vowed to continue more war against Israel after Sinwar's death.