Before the Bell: US stocks slide, oil surges, gold rallies

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Shares fell on Wall Street as concerns mounted ahead of a potential ground invasion of Gaza by Israeli forces. The volatility index leapt more than 20pc.

US stocks were mostly lower in afternoon trade as tech shares fell and volatility surged. Earnings from three major banks – JPMorgan, Wells Fargo and Citigroup – helped to offset some of the negative sentiment.

“This may be the most dangerous time the world has seen in decades,” JPMorgan boss Jamie Dimon said in a statement with the firm’s third-quarter results.The local currency slipped 0.3 per cent, falling below US63¢; the Bloomberg dollar spot index edged higher.The yield on the US 10-year note slid 7 basis points to 4.63 per cent at 1.50pm in New York.

“We expect mounting headwinds to consumers’ finances, depleted excess savings and higher borrowing costs to cause consumer spending to slow sharply over the next few quarters, though probably not by as much as the very weak levels of consumer sentiment suggest.

 

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