In a day marked by wavering market sentiments, US stocks managed to maintain a mostly flat position after a bout of turbulence during Tuesday's trading session. However, the NASDAQ Composite Index, which had seen significant fluctuations over the past few days, experienced a noticeable drop during the New York trading session yesterday.

The NASDAQ Composite Index saw a decline of 34 points, contributing to an 85-point decrease over the five-day average. This downturn had a significant impact on the tech-heavy index, while the Dow Jones Industrial Average and S&P 500 managed to stay relatively stable.

One of the key factors influencing these fluctuations was the upward surge in bond yields, which particularly affected technology stocks.

The 2-year Treasury yield reached 5.212%, marking its highest level since July 6, 2006. The 10-year Treasury yield also rose to 4.846%, reaching its highest yield since July 25, 2007. Similarly, the 30-year Treasury yield hit 4.951%, representing its highest yield since August 22, 2007.

Market dynamics were further complicated by mixed signals and a flurry of events. A retail sales report that surpassed expectations and a wave of strong earnings reports set the tone for the day initially, leading to a brief rally in stock prices.

However, this optimism was short-lived as developments in the current geopolitical landscape weighed heavily on investor sentiment. President Joe Biden's upcoming visit to Israel, against the backdrop of escalating tensions, added an element of uncertainty to the markets.

Remarkably, attention has also turned towards US-listed military stocks, bolstering the NYSE Composite index with a gain of 56 points during the trading day. The stock markets are currently experiencing a degree of volatility, with a shifting focus on US policy in response to the escalating conflict in the Middle East. Investors are closely watching for potential repercussions on international trade relationships.

This shift in attention has steered away from previous concerns, such as bank contagions, the challenges faced by US tech stocks, and the ongoing stance of the Federal Reserve on interest rate hikes, which have continued despite inflation being under control.

Now, all of these factors have taken a back seat as the world watches and waits for further developments in the Middle East, with President Biden's visit to Israel potentially echoing through the performance of the US stock market.

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