December S&P 500 futures (ESZ23) are down -0.59%, and December Nasdaq 100 E-Mini futures (NQZ23) are down -0.68% this morning as the military conflict in the Middle East dampened risk appetite, while market participants looked ahead to the release of U.S. inflation data and the minutes of the Federal Reserve’s latest policy meeting later in the week.
Oil climbed about +3% after Hamas’s unexpected attack on Israel raised concerns of a wider conflict. The Israeli-Palestinian conflict escalated into a full-fledged war over the weekend as members of the Islamist group Hamas launched attacks on multiple Israeli towns, resulting in the deaths of hundreds of Israelis and the abduction of dozens more. In response, Israeli airstrikes heavily targeted various sites in Gaza, and on Sunday, the Israeli government declared war. Prime Minister Benjamin Netanyahu pledged retribution and cautioned that a protracted and challenging fight lay ahead.
