Zinger Key Points
- Defense-related stocks outperformed the broader market Tuesday.
- Reuters News reported that two rockets landed within the Ain al-Asad air base, which hosts U.S. and international forces west of Baghdad.
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Defense-related stocks rose on Tuesday, outperforming the broader stock market, amid rising tensions in the war between Israel and Hamas.
The iShares U.S. Aerospace & Defense ETF ITA rallied 1.2%, while the Invesco Aerospace & Defense ETF PPA surged 0.8%.
RTX Corporation RTX emerged as one of the leading daily performers for the defense industry, surging by 6.7% following the company’s announcement of better-than-expected earnings and revenue last quarter.
Israel-Hamas War: What Happened Tuesday?
Israeli Navy forces reportedly killed a group of Hamas terrorists who attempted to infiltrate Israel from the Gaza Strip via the sea. While the exact number of infiltrators was not specified by the Israel Defense Forces (IDF), Hebrew-language media reports suggest that at least four terrorists were killed in the operation.
The United Nations agency for Palestinian refugees has issued a warning that it will cease operations across the Gaza Strip on Wednesday unless there are deliveries of fuel to the war-torn territory. The IDF responded by noting that large tanks containing over 500,000 liters of fuel are already inside Gaza and suggested the UN request access from Hamas.
In another development, Reuters News reported that two rockets landed within the Ain al-Asad air base, which hosts U.S. and international forces west of Baghdad. A Pentagon spokesman is expected to hold a news briefing later to address the situation.
Palestinian President Mahmoud Abbas, alongside French President Emmanuel Macron, called for an immediate end to the “aggression” in Gaza and demanded protection for the Palestinian people.
Saudi Foreign Minister Faisal bin Farhan Al Saud emphasized the humanitarian imperative of a ceasefire and the release of hostages during a United Nations meeting in New York City. He also stressed the importance of protecting civilian lives and infrastructure, particularly hospitals.
Hospitals in the Gaza Strip are facing dire conditions, with the Palestinian Authority’s health minister stating they can no longer accept new patients. Israeli airstrikes and fuel shortages have caused 12 hospitals to cease operations, while overcrowding in the remaining facilities has forced doctors to treat patients even in hallways using mobile phones for light, Al-Jazeera reported.
U.S. Secretary of State Antony Blinken called for “humanitarian pauses” in the Gaza conflict to protect Palestinian civilians. He emphasized that the United States does not seek conflict with Iran but will defend its personnel and security “swiftly and decisively” if attacked by Iran or its proxies.
Blinken urged other members of the UN Security Council, including Russia and China, to prevent Iran from opening another front against Israel and to hold Iran accountable if it does so.
Market Reactions
In early afternoon trading in New York, equities continued to advance, with the SPDR S&P 500 ETF Trust SPY gaining 0.8%, while the tech-focused Invesco QQQ Trust QQQ increased by 0.9%.
Israeli-related stocks, represented by the iShares MSCI Israel ETF EIS, broke a nine-day losing streak by rising 1% on Tuesday.
Yields remained relatively steady, with the 10-year Treasury yield holding at 4.84%, while two-year yields experienced a slight uptick to 5.15%.
Gold, tracked by the SPDR Gold Trust GLD, reversed its early daily losses and traded flat for the day.
Oil prices faced downward pressure, declining by nearly 3%, following a report from the International Energy Agency projecting that global demand would peak within this decade.
Bitcoin BTC/USD was 2% higher to $33,734, on track to achieve its sixth straight day of gains.
Read now: Bitcoin Stocks Skyrocket — Slice Past Key Technical Barriers Like Knife Through Butter
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