U.S stocks rise despite Middle Eastern conflict and oil price surge
U.S stock indices recorded gains on Monday, even as the ongoing conflict between Hamas and Israel and a surge in oil prices created a backdrop of uncertainty. The Dow Jones Industrial Average rose by approximately 197 points or 0.6%, closing at around 33,604. Simultaneously, the S&P 500 index and the Nasdaq Composite Index also climbed, with increases of 0.6% and 0.4% respectively.
The conflict in the Israel-Gaza region has been a major factor influencing global markets, triggering a 4.3% hike in U.S benchmark oil prices to $86.38 per barrel. This situation has led to concerns over potential disruptions to Middle Eastern crude supplies.
Despite the geopolitical tensions and rising oil prices, investors sought safety in assets such as gold and the U.S dollar on Monday. This move towards safer assets was particularly noticeable given that the Treasury market was closed for Columbus Day and Indigenous Peoples Day, leading to an absence of usual safe-haven government bonds for investors to turn to.
This unexpected rise in U.S stocks amidst escalating geopolitical tensions and surging oil prices underscores the resilience of the market in navigating through complex global events.
