Stocks Grapple With Geopolitical Pressures, Gold Eyes $2,400, Bitcoin Falls Below $62,000: What’s Driving Markets Tuesday? – Bank of America (NYSE:BAC)

Investors remain on edge as geopolitics continue to shape market trends, with Israel mulling a response to Iran while the U.S. and key allies explore further sanctions against Tehran.

U.S. major averages display mixed performances as of midday trading Tuesday. The S&P 500 holds steady at 5,200 points, while blue-chip stocks outperform the broader market, and small caps experience some declines.

In its April World Economic Outlook, the International Monetary Fund raised growth projections for the U.S. economy, while eyeing the possibility of Federal Reserve rate cuts this year as inflation declines. Yet, an escalation in the Middle East could complicate the picture, pushing oil and inflation higher and forcing central banks to tighten again.

Treasury yields continue to kick higher, with the yield on the 10-year Treasury bond reaching 4.65%. Bond-related ETFs declined further, with the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) down 0.5%.

Despite the uptick in yields and a stronger dollar, gold continues to showcase an impressive strength, with the yellow metal up 0.3% to $2,390 per ounce, on track for a record-high close.

Oil prices were slightly softer, down 0.4%. Bitcoin (CRYPTO: BTC) is down 2.5% to $61,900, marking a 15% drop since last week’s high.

The SPDR S&P 500 ETF Trust (NYSE:SPY) held steady at $504.71, the SPDR Dow Jones Industrial Average (NYSE:DIA) rose 0.4% to $379.06 and the tech-heavy Invesco QQQ Trust (NASDAQ:QQQ) held steady at $431.91, according to Benzinga Pro data. 

Sector-wise, the Health Care Select Sector SPDR Fund (NYSE:XLV) outperformed, up 0.4%. The Energy Select Sector SPDR Fund (NYSE:XLE) was the major laggard, down 0.9%.

• Tesla, Inc, (NASDAQ:TSLA) fell more than 2.8%, on track to close at the lowest level in a year, after analysts interpreted the recent layoff announcement as a negative sign for the company’s outlook.
• Companies reacting to earnings were Bank of America Corp. (NYSE:BAC), down 3.3%; Morgan Stanley (NYSE:MS), up 3.4%; Northern Trust Corp. (NYSE:NTRS), down 4%; PNC Financial Services Group, Inc. (NYSE:PNC), down 1.9%; Jonson & Johnson (NYSE:JNJ), down 2.4%; and UnitedHealth Group Inc. (NYSE:UNH), up over 6%.
• Skillsoft Corp. (NASDAQ:SKIL) fell nearly 40%, after a revenue miss and departure of its CEO.
• Hawaiian Electric Industries, Inc. (NYSE:HE) fell 18%, falling below last year’s lows, after the company announced readiness to implement rolling blackouts owing to reduced wind and solar power generation, along with the temporary outage of several large generators.
• Notable names reporting earnings after the close are J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT), United Airlines Holdings, Inc. (NASDAQ:UAL) and Interactive Brokers Group Inc. (NYSE:IBKR).

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