U.S. Stock Futures Fall as Israel-Hamas Conflict Causes Market Volatility

U.S. stock index futures declined on Monday as the ongoing conflict between Israel and the Palestinian group Hamas created uncertainty in global markets. The escalating tensions prompted investors to seek safe-haven assets, leading to a rise in crude oil prices by nearly 4%. Israel’s troops continued their efforts to clear out Hamas gunmen, who have caused significant casualties and taken hostages. In response, Israel launched its most extensive bombardment of the Gaza Strip, resulting in a high number of casualties.

The deepening conflict has caused concern among investors, leading to a decline in U.S. stock futures. At the same time, traditional safe-haven assets like gold and the U.S. dollar experienced gains. Crude oil prices surged due to growing uncertainty in the market, with potential disruptions to oil supplies being a key concern.

Energy companies such as Chevron, Exxon Mobil, Marathon Oil, and Occidental Petroleum saw their shares rise by around 3% in premarket trading. However, airlines including United Airlines, Delta Air Lines, and American Airlines suspended direct flights to Tel Aviv, causing their shares to decline by over 2%.

Gold mining companies Newmont and Barrick Gold also experienced gains, rising by 1.7% and 2.4%, respectively. Defense companies like Northrop Grumman, RTX, General Dynamics, and Lockheed Martin saw their shares advance between 2.9% and 4.7%.

Major technology stocks, including Apple, Meta Platforms, Alphabet, and Amazon.com, dipped by 0.9% to 1.2%. Chip stocks such as Intel, Nvidia, Qualcomm, and Advanced Micro Devices also experienced losses ranging from 1.0% to 2.2%.

The upcoming week will focus on key inflation readings, including September’s producer price and consumer price indexes, as well as the Federal Reserve’s September meeting minutes. Additionally, investors will be monitoring speeches by Fed Vice Chair Philip Jefferson and Vice Chair for Supervision Michael Barr. Quarterly earnings reports from major banks like JPMorgan Chase, Wells Fargo, Citigroup, and asset manager BlackRock will also be in the spotlight.

In other news, Tesla’s China-made EV sales volume for September decreased by 10.9% compared to the previous year, causing a 1.7% drop in the company’s shares. On a positive note, Disney gained 0.8% after reports revealed that Nelson Peltz’s Trian Fund Management increased its stake in the media giant, with the activist investor expected to request multiple board seats, including one for himself.

While the conflict between Israel and Hamas continues to impact global markets, investors are closely monitoring the situation and its potential implications on various sectors. The market remains cautious as events unfold, and the focus remains on finding a resolution to the conflict.

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