Oil prices are climbing, and stocks are slipping as violence in the Middle East injects more unease into financial markets worldwide. The S&P 500 was 0.4% lower ealy Monday in its first trading since Hamas launched a surprise attack over the weekend against Israel, which then formally declared war.
Oil prices were up more than $3 a barrel. Conflict in the Middle East often pushes oil prices higher given the risk of disruptions to supplies. 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.
In Asian trading, Shanghai reopened after a weeklong holiday, falling 0.4% to 3,096.92. The Hang Seng in Hong Kong gained 0.2% to 17,486.48. Its market reopened for afternoon trading after staying closed in the morning due to typhoon warnings. A strong job market also carries some rewards for financial markets in the short term. It means the economy is still doing well despite high rates, which could support corporate profits.