U.S. Stocks Rise Amidst Rising Oil Prices and Israel-Gaza Conflict
U.S. stocks show resilience with consecutive gains amidst the Israel-Gaza conflict and rising oil prices. Safe-haven assets, such as gold and the U.S. dollar, are sought by investors. Israel enacts measures to restrict access to the Gaza Strip. Cash...
Troy D. Hanson
October 09, 2023
Despite a weekend assault by Hamas on Israeli that resulted in multiple casualties, U.S. stocks demonstrated resilience by posting consecutive gains on Monday. The Dow Jones Industrial Average (DJIA) witnessed a 0.6% increase, climbing nearly 197 points and closing near 33,604. Similarly, the S&P 500 index experienced a 0.6% advancement, while the Nasdaq Composite Index saw a 0.4% gain, according to preliminary FactSet data.
The rise in U.S. benchmark oil prices also contributed to market dynamics. Crude oil prices surged by 4.3% to reach $86.38 a barrel as traders assessed the potential impact of the Israel-Gaza conflict on oil supplies originating from the Middle East.
In response to the escalating crisis, investors sought refuge in safe-haven assets such as gold and the U.S. dollar. The price of gold rose by 1.71%, while the U.S. dollar remained strong.
Meanwhile, cash trading within the $25 trillion Treasury market remained closed due to the observance of the Columbus Day and Indigenous Peoples Day holiday.
To intensify the conflict, Israel enacted measures to restrict access to the Gaza Strip, including food, fuel, and other supplies, according to reports from the Associated Press.