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U.S. stock futures tumble, oil prices surge as Hamas attack on Israel rattles investors

By Mike Murphy

U.S. stock-index futures fell and oil prices jumped late Sunday, as investors were rattled by geopolitical uncertainty after Hamas launched a surprise weekend attack on Israel.

Dow Jones Industrial Average futures (YM00) fell about 200 points, or 0.7%, right out of the gate, while S&P 500 futures (ES00) and Nasdaq-100 futures (NQ00) sank as well. Traditional havens such as gold (GC00) and the U.S. dollar DXY rose.

Meanwhile, oil futures (CL00) surged late Sunday. Analysts said crude prices could rise in the short term due to possible knock-on effects on Iranian oil exports.

Read more: Oil prices jump 3% after Hamas attack on Israel

"With the Middle East Powder Keg igniting again, oil prices will rise tangentially to heightened geopolitical risks," Stephen Innes, managing partner at SPI Asset Management, wrote in a note Sunday. "We should expect continued turbulence in crude oil prices as the rates-driven recession fears give way to the worrisome terrorist escalation in the Middle East."

On Saturday, Hamas launched a sweeping attack on Israel, killing hundreds. Israel responded by bombarding the Gaza Strip, and on Sunday the Israeli government declared war, with Prime Minister Benjamin Netanyahu vowing vengeance and warning of a long and difficult fight ahead. The Wall Street Journal reported Iran helped plan the attack, a development that -- if confirmed -- could broaden the conflict.

On Friday, the Dow Jones Industrial Average DJIA rose 288.01 points, or 0.9%, to close at 33,407.58, while the S&P 500 SPX gained 50.31 points, or 1.2%, to finish at 4,308.50 and the Nasdaq Composite COMP climbed 211.51 points, or 1.6%, to end at 13,431.34.

On the week, the Dow fell 0.3% while the S&P 500 ticked up 0.5% and the Nasdaq rose 1.6%. The Dow fell for the third week in a row, while the S&P 500 snapped a four-week losing streak and the Nasdaq rose for the second straight week, according to Dow Jones Market Data.

Investors are awaiting September inflation data that will be released this week, and the start of the third-quarter earnings season, with results coming this week from JPMorgan Chase & Co. (JPM) and Delta Air Lines (DAL), among others.

-Mike Murphy

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.


(END) Dow Jones Newswires

10-08-23 1904ET

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