U.S. Stocks Fall as Israel-Hamas Conflict Intensifies

Investors Wary as Israel-Hamas Conflict Deepens

U.S. stocks are experiencing a downward trend on Monday due to concerns about the escalating conflict between Israel and Hamas. Investors are on edge as uncertainty looms over the market. In addition to the geopolitical tensions, a week of inflation data and major bank earnings awaits, adding to the cautious sentiment.

Stock Movers: Disney, Lockheed Martin, Exxon Mobil, and Chevron

Several U.S. stocks are making significant moves in the market today:

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• Disney stock rose 1.4% following reports that Nelson Peltz’s Trian Fund Management has increased its stake in the entertainment giant. It is anticipated that the activist investor will request multiple board seats, including one for himself, signaling potential changes within the company’s leadership.
• Lockheed Martin stock rose 8%, Northrop Grumman stock rose 10.8%, and RTX stock rose 4.6% as defense stocks surge amidst expectations of increased government spending due to heightened geopolitical tensions.
• Exxon Mobil stock rose 2.9% and Chevron stock rose 2.6% as oil prices surged. The escalating conflict in the Middle East has raised concerns about future global supply, leading to an increase in energy stocks.
• Citigroup stock fell 0.8% as the banking giant agreed to sell its retail wealth management portfolio in mainland China. This move allows Citigroup to streamline its operations while HSBC stock declined 2.3% following the acquisition announcement.
• United Airlines stock fell 5%, American Airlines stock fell 4.7%, and Delta Air Lines stock dropped 4.5% as airlines reduced or halted flights to Israel due to the escalating violence between Israeli forces and Hamas.
• Spotify stock fell 2.5% after Redburn-Atlantic downgraded its stance on the audio streaming service. The downgrade was based on predictions that the company’s new audiobook offering may have a negative impact on its gross margin.
• Bristol-Myers Squibb stock fell 0.8% following the pharmaceutical company’s announcement of its acquisition of cancer drugmaker Mirati Therapeutics for up to $5.8 billion. This move aims to diversify Bristol-Myers Squibb’s oncology business.

As the conflict between Israel and Hamas intensifies, the impact on the market remains uncertain. Investors are closely monitoring the situation and its potential ramifications for various industries. The coming week’s economic data and corporate earnings reports will provide further insights into the market’s direction.