Stocks Fall as Middle East Tensions, Rate Hikes Spook Investors

Stocks futures sank on Monday amid concerns over Middle East conflict and higher interest rates. Dow futures dropped 0.5%, S&P 500 futures lost 0.6%, Nasdaq futures fell 0.8%.

Oil prices jumped as much as 5% after Palestinian militant group Hamas attacked Israel, raising worries about impact on crude production.

Safe havens like gold and government bonds rallied as geopolitical risks rattled investors.

Strong September jobs report reinforced case for more Fed rate hikes, worrying investors borrowing costs will stay higher for longer.

Upcoming US CPI report on Thursday, Fed meeting minutes could provide more clues about path of interest rates.