US stocks rise and bond yields move lower as investors watch Israel-Hamas conflict

• US stocks climbed Tuesday as investors continued to monitor the Israel-Hamas conflict.
• The 10-year Treasury yield dipped by about nine basis points.

US stocks climbed slightly at the start of trading Tuesday and bond yields moved lower while investors continued to watch the Israel-Hamas conflict unfold.

The yield on the US 10-year Treasury dipped about nine basis points to 4.69%, highlighting a flight to safe haven assets like US government bonds amid a fresh bout of geopolitical turmoil out of the Middle East.

While yields slipped further from 16-year highs notched just last week, BlackRock cautioned that the bond market sell-off still isn't over, and further pain could still be on the way.

"We still steer clear of long-term U.S. bonds even after their surge," strategists at the asset-management giant said. "Why? We think term premium – the compensation investors demand for the risk of holding long-term bonds – will rise further, pushing yields higher, as markets price in persistent inflation, higher-for-longer rates and high debt loads."

Wall Street, meanwhile, remains concerned about Federal Reserve moves and the prospect of a higher-for-longer rate regime. Prolonged tight policy, according to Goldman Sachs, could curb economic growth for 2024, rattle stocks, and spark more downside for corporations that had grown accustomed to easy money.

Here's where US indexes stood as the market opened at 9:30 a.m. on Tuesday:

• S&P 500: 4,343.72, up 0.19%

• Dow Jones Industrial Average: 33,682.50, up 0.23% (+77.51 points)

• Nasdaq Composite: 13,503.28, up 0.18%

Here's what else is going on:

• China's property market is facing massive risks and authorities must meet it with "forceful action," the IMF's chief economist said.
• Treasury Secretary Janet Yellen tried to calm down markets amid the historic collapse of US bonds.
• Jim Rogers rang the alarm on US debt and warned of bubbles in stocks and real estate.
• RBC says the yuan has a paltry share of reserves, so the dollar isn't going anywhere.
• Global central banks are hoarding gold like never before.

In commodities, bonds, and crypto:

• Oil prices dropped, with West Texas Intermediate down 0.25% to $86.16 a barrel. Brent crude, the international benchmark, moved lower 0.2% to $87.93 a barrel.
• Gold edged higher 0.21% to $1,868.10 per ounce.
• The 10-year Treasury yield moved lower nine basis points to hover at 4.69%.
• Bitcoin dipped 0.53% to $27,461.