American indices fell amid escalating conflict in the Middle East
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Today, October 9, all major American indices fell slightly amid the escalation of the conflict between Israel and the Palestinian Hamas movement. The NASDAQ was down almost 1%, the S&P 500 was down 0.4%, and the Dow Jones was down 0.1%. Brent and WTI oil prices on Monday grew by 4%.
Experts do not expect the decline to be long-term. “We expect short-term volatility in the stock and oil markets as investors contemplate rising tensions in the Middle East,” said James Demmert, chief investment officer at Main Street Research. “Geopolitical risks typically do not have a long-term impact on markets,” said Deutsche Bank analyst Jim Reed, adding that these types of events can have second-order consequences that may take months or years to manifest.
On Monday, shares of American airlines that suspended flights to Israel fell quite sharply: United Airlines – by 5.5%, American Airlines – by 5.1%, Delta Air Lines – by 5%. Shares of American military-industrial companies rose after promises US authorities to provide additional military assistance to Israel. Northrop Grumman shares rose 11%, General Dynamics – 8%, Lockheed Martin – 7.5%.
Read more about the conflict in the Kommersant article. “Shock Without Awe”.
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