Wall Street tumbled lower in premarket trading today, according to the Associated Press, as crude oil prices surged after the Israeli government declared war following deadly attacks by Hamas from the Gaza Strip.
Futures for the S&P 500 dropped 0.6% before the bell, while futures for the Dow Jones industrials fell 0.5%. The bond market in the U.S. is closed today for Columbus Day/Indigenous Peoples Day, but the New York Stock Exchange and Nasdaq will be open.
Oil prices were up more than $3 per barrel. Conflict in the Middle East often pushes oil prices higher given the risk of disruptions to supplies.
Brent crude, the pricing basis for international trading, advanced $3.32 to $87.90 per barrel.
Geopolitical tensions also sent U.S. military contractors surging early this morning. Northrop Grumman and RTX each rose 3.6%, while Lockheed Martin jumped 4.6%.
In equities markets, shares in travel and leisure companies such as airlines and cruise ships tumbled. American, United, and Delta suspended service to Israel as the U.S. State Department issued travel advisories for the region, citing potential for terrorism and civil unrest.
Reports this week on inflation at both the consumer and wholesale levels are the next big data points due before the Fed makes its next announcement on interest rates on Nov. 1.
This week will also bring the unofficial start to earnings reporting season for the S&P 500, with Delta Air Lines, JPMorgan Chase, and UnitedHealth Group among the big companies scheduled on the calendar.
In currency trading today, the dollar rose to 149.16 Japanese yen from 149.11 yen.
