US Market Turnaround: Dow & Nasdaq End Higher Despite Geopolitical Turmoil
US Market LIVE 9 Oct 2023: The US stock market indexes opened lower on Monday due to a spike in crude oil prices after the surprise Hamas attack on Israel, adding concerns over elevated inflation and rising interest rates.
Dow Jones opened lower by 147.74 points at the 33259.84 level, while the S&P 500 made a negative opening of 18.98 points at the 4289.02 level. The Nasdaq Composite index also made a lower opening of 105.12 points at the 13326.22 level.
US Market LIVE Today
At 11.50 a.m. EDT, The US stock market indexes trimmed some early losses. Dow Jones erased most of its early losses and is trading lower by 25.78 points or 0.08 percent at the 33381.80 level while the S&P 500 is trading negative by 8 points or 0.19 percent at 4300.50 levels. The tech-heavy Nasdaq Composite also trimmed its early losses and is trading lower by 75.44 points or 0.56 percent at 13355.91 levels.
US Market News
The US markets trimmed their early losses and trading with moderate losses. The market sentiments were hit as the Palestinian militant group Hamas attacked Israel on Saturday and escalated the conflict into a full-blown war in the last two days.
This has spiked the crude oil prices due to fear of supply disruption. Both the crude oil benchmarks, WTI and Brent crude oil are trading above 4% higher on Monday.
The crude oil prices sharply closed lower in the last week, falling roughly 10%. On the first trading day, almost 50% of the previous week’s losses were recovered due to the conflict.
Though neither Israel nor Palestine are major players in global energy production, both nations are located in a key region for oil that could have broader implications and create supply disruption for crude.
This stoked concerns that a rally in crude oil prices for a longer period will add inflationary pressure, and will force central banks to remain hawkish and leave the borrowing cost elevated for a longer period. Meanwhile, the US bond market is closed on Monday on account of Columbus Day.
The US WTI crude is up by 4.22% at $86.30 per barrel while London-based Brent crude oil is trading higher by 4.04% at $87.94 per barrel.
Stock in News Today
The shares of major defense and oil companies are trading higher amid the Israel and Palestine conflict, with Lockheed Martin and Northrop Grumman Corp gaining 6.9% and 10% respectively. The shares of oil companies like Marathon Oil, Exxon Mobil, and Chevron are gaining 5.6%, 4.3%, and 3.6% respectively supporting Dow to erase some losses.
The share of Walt Disney is moving around 0.81% higher after The Wall Street Journal reported that activist investor Nelson Peltz’s Trian Fund Management has hiked its stake and could seek multiple board seats, including for himself.
The shares of major US airline companies American Airlines, United Airlines, and Delta Air Lines are trading lower by more than 5% each, as dozens of flights to Israel were canceled due to a Hamas attack on Israel.
The banking giants like JP Morgan Chase, Citigroup, and Wells Fargo are trading marginally lower ahead of their third quarterly earnings which are scheduled on Friday.
US Market at Close
The US stock market indexes pared early losses and closed higher on Monday, as investors shrugged off the rising geopolitical tensions between Israel and Palestine and bet on the beaten-down stocks after the Fed official’s dovish remark. The key US stock market indexes, Dow Jones and S&P 500 erased early losses in the second half and closed higher by 0.59 percent and 0.63 percent respectively, while Nasdaq was gained by 0.39 percent.
Also, read Dow and Nasdaq Futures Tumble Following Hamas Attack on Israel, Oil Prices Soar
Global Stock Market: Weekly News and Analysis Report (2- 6 Oct 2023)
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