Posted 10/9/2023, 1:34:33 PM
Stocks Sink as Middle East Tensions, Rate Worries Spook Investors
- Stocks sank Monday as Middle East conflict added geopolitical risk to existing concerns about rates and inflation.
- Dow dropped 0.2% at open, S&P 500 lost 0.5%, Nasdaq fell nearly 1% after Islamist group Hamas attacked Israel.
- Oil prices jumped 5% on speculation crude producers in region could get drawn into conflict. Safe havens like gold and bonds rallied.
- Investors face reality that borrowing costs will stay higher for longer after hot September jobs data.
- Upcoming CPI data and Fed meeting minutes should provide insight into policymakers' thinking on interest rates.