Geopolitical Tensions Fuel Market Instability, Gold Soars to New Highs

Global equity markets faced declines on Monday due to rising geopolitical tensions and uncertainty over the U.S. presidential election. Gold prices surged as investors sought safe havens. The S&P 500 and Dow Jones fell, while the Nasdaq saw slight gains, with investors eyeing corporate earnings amidst a tense geopolitical climate.

Global markets took a hit on Monday as geopolitical tensions and U.S. presidential election uncertainties prompted caution among traders, leading to record highs in gold prices. Rising tensions between Israel and Hezbollah spurred hundreds of Beirut residents to flee, impacting investor confidence worldwide.

Defensive stocks, such as real estate and healthcare, led declines in the S&P 500 and Dow Jones, while the Nasdaq experienced modest gains, propelled by Nvidia reaching a record high. European and Asian shares followed suit with declines as earnings season kicked off.

Oil prices rebounded after last week's drop, while the dollar strengthened amid rising U.S. bond yields. Markets are closely watching the Fed's upcoming decisions, with a significant probability of a rate cut in November. Meanwhile, escalating Middle East tensions continue to spark market volatility.

(With inputs from agencies.)