Dow futures fall 100 points after Hamas attack against Israel


Traders work on the floor of the New York Stock Exchange (NYSE) on May 10, 2023.

Brendan McDiarmid | reuters

Stock futures were lower on Sunday as attacks on Israel by Palestinian militants increased geopolitical risks in an already fragile market dealing with inflation and rising interest rates.

tied to the future Dow Jones Industrial Average Fell 189 points or 0.5%. S&P 500 futures while fell 0.7% nasdaq 100 futures Slipped 0.6%.

The Israeli-Palestinian conflict turned into a full-scale war on Saturday following an attack by terrorist group Hamas, putting Israel on alert. Israeli Prime Minister Benjamin Netanyahu stressed that Hamas “will have to pay a price it has never known before.”

WTI crude oil futures were up 2% in early trading on Sunday.

Rising geopolitical tensions could have an impact on energy markets, with some experts predicting a “knee-jerk” impact on oil. The rising tensions could also serve to fuel further market volatility that has kept traders worried about persistent inflation and high interest rates.

Oil prices fell meaningfully below $90 a barrel last week crude oil a decline of about 11% and US West Texas Intermediate A decline of 8% was recorded. While neither Israel nor Palestine are major players in the global energy picture, both countries are located in a key region for oil that could have wide-ranging effects. Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman told CNBC on Sunday that OPEC+, the oil cartel that also includes non-OPEC member Russia, would remain cautious on any moves to further increase oil output and change its cut plans.

With the bond market closed on Monday for Columbus Day, Wall Street will have to wait until Tuesday for an update on interest rates.

All three major indexes finished higher last week despite a stronger-than-expected jobs report, which initially pushed Treasury yields higher and stocks lower. Friday’s better-than-expected jobs report showed that hiring remains strong, with the economy adding 336,000 jobs last month. Meanwhile, wages grew at a substantially slower pace, giving investors hope that inflation is slowing.

Bond yields eased somewhat as stocks rose on Friday, but the 10-year Treasury yield hit a 16-year high earlier in the week.

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