As a result of the attack on Israel by Palestinian militants, which increases the geopolitical risk in a market already vulnerable to inflation and rising interest rates, stock futures fell early on Monday.
282 points, or 0.84%, were lost by futures linked to the Dow Jones Industrial Average. Both the S&P 500 and Nasdaq 100 futures declined by 0.89% and 0.85%, respectively.
On Saturday, the militant organisation Hamas staged an invasion, which Israel seemed unprepared for, and the Israeli-Palestinian conflict erupted into a full-fledged war. Hamas “will pay a price it has never seen,” according to Israeli Prime Minister Benjamin Netanyahu.
In early Sunday trading, WTI crude oil futures were 2% higher.
With some experts predicting an oil “knee jerk spike,” the escalating geopolitical tensions may have an impact on the energy market. As a result of ongoing inflation and higher interest rates, traders have been concerned about market volatility, which might be stoked by the escalating conflict.
Source (CNBC)
