Tuesday, May 21, 2024
HomeTrading RoomFollowing a Hamas Attack Against Israel, the Dow Futures Drop More Than...

Following a Hamas Attack Against Israel, the Dow Futures Drop More Than 200 Points

Early on Monday, stock futures declined as the attack on Israel by Palestinian militants increased the geopolitical risk facing a market already vulnerable to inflation and rising interest rates.

235 points, or 0.7%, were lost by futures linked to the Dow Jones Industrial Average. Both the S&P 500 and Nasdaq 100 futures declined by 0.82% and 0.83%, respectively.

After the terrorist organisation Hamas conducted an invasion, which Israel appeared to be unprepared for, the Israeli-Palestinian conflict reached a full-blown war on Saturday.

In early trade on Sunday, WTI crude oil futures were 2% higher.

Some experts are predicting a “knee jerk increase” in oil prices as a result of the escalating global tensions. The market volatility that has put traders on edge due to sustained inflation and increased interest rates may also be stoked by the escalating conflict.

Last week, the price of oil significantly dropped back below $90 a barrel, with Brent crude falling by about 11% and U.S. West Texas Intermediate falling by 8%. Despite not being significant players in the world’s energy market, both Israel and Palestine are situated in a crucial oil region, which may have wider ramifications. Prince Abdulaziz bin Salman, the Saudi Arabian energy minister, said CNBC on Sunday that OPEC+, the oil cartel that includes Russia but is not a member of OPEC, will remain cautious on any moves to increase oil output further and alter plans for cuts.

Source (CNBC)

SourceCNBC
- Advertisment -

Most Popular

Recent Comments