Global stocks mixed as markets monitor US bond yields, Mideast conflict

NEW YORK, United States — Global stocks were mixed Monday as markets monitored US Treasury yields and ongoing conflict in the Middle East, while awaiting key earnings and economic data later in the week.

US indices opened the day firmly lower after the yield on the 10-year US Treasury note topped five percent for the first time in 16 years. 

But as yields moved lower later in the day, large technology companies gave markets a boost, with Google parent Alphabet, Amazon and Microsoft shares all rising ahead of earnings due later in the week.

That lifted the Nasdaq into positive territory at session's end, even as the Dow and S&P 500 both retreated.

"The trajectory of US Treasuries is not merely a question; it is the only question for financial markets," said Stephen Innes, managing partner at SPI Asset Management, in a note to clients. 

"US government bonds are the critical benchmark reference point against which virtually all other global assets are ultimately priced off," he added.  

The rise in bond yields has worsened worries that Federal Reserve interest rates will stay higher for longer, denting the growth outlook.

Besides a heavy week of earnings, this week's schedule includes several significant economic reports that will be scrutinized for their implications on monetary policy.

These include a report on third quarter US growth and September personal income and spending that also includes key inflation data.

Markets are also keeping an eye on rising carnage in the Middle East where Israel has launched a bombing campaign following the October 7 Hamas attack on the country.

While the fear remains that other countries including Iran could be drawn into a regional conflagration, Israel holding off on a ground attack has provided a shaft of light for the crude market.

Both major oil futures contracts lost more than two percent.

Oil is "taking a breather while the focus on humanitarian aid and securing hostage releases suggest that a potential ground invasion from Israel can wait," Yeap Jun Rong at IG Asia said.

"That may contain the risks of further escalation, at least for now."

Elsewhere, there was little movement on Europe's bourses, with London finishing