Equity markets advanced on Tuesday, with a decline in 10-year treasury yields. The decline in yield may signal a top to the Fed's rate hiking cycle is near, but investors should not rely too heavily on the signal. The decline is likely due to risk-off safe-haven asset seekers moving into bonds following the violence in Israel. The developing conflict could come to a head sooner rather than later due to the involvement of US citizens who are held hostage or dead. The market risks include the possibility of this conflict spinning out of control and leading to a wider-spread war, given the parties involved.

The S&P 500 advanced more than a half percent on Tuesday, but the gains may be limited this week. The PPI and CPI data are due out this week and may give a reason for investors to sell. The analysts expect to see inflation cool compared to the prior month's data, but there is risk in the energy market. Oil prices are up substantially from earlier this year and have yet to show in the inflation reports.