(Bloomberg) — The persistent rally in stocks was knocked for a loop Tuesday as investors retreated to safer corners of the market when the conflict in the Middle East escalated.
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Haven assets were bid up with bonds, oil, gold and the US dollar all advancing after Iran fired a barrage of missiles at Israel following an advance of armed forces into Lebanon. The US is actively supporting preparations to defend Israel, according to an earlier report.
Gold briefly climbed above $2,670 an ounce while oil topped $71 a barrel.
“Markets are in wait and see mode,” said Kathleen Brooks, research director at XTB. “The next 24 hours will be critical to see how far this situation escalates and whether the rush to safe havens was justified.”
If the conflict blows over, she expect stocks and tech shares to recover. The tech sector was the session’s worst performer with…
