The market was initially affected by a new war in the Middle East, causing some uncertainty on Monday morning. However, investors quickly adjusted their strategies.
Despite the military assault by Hamas on Israel over the weekend, most major stock indices ended the day with gains. Bond markets were closed for the Columbus Day holiday, while oil prices experienced a significant surge. The U.S. benchmark WTI crude jumped over 4%, resulting in a positive impact on oil-related stocks. Chevron, with a gain of nearly 3%, played a leading role in driving up the Dow Jones Industrial Average. Additionally, Halliburton and Marathon Oil were among the top gainers on the S&P 500.
Defense stocks performed even better, with Northrop Grumman experiencing an impressive surge of 11%. L3Harris, Huntington Ingalls, Lockheed Martin, and General Dynamics also made it to the top five gainers on the S&P 500. On the other hand, tourism-related stocks moved in the opposite direction, with United Airlines, Delta Air Lines, and Carnival leading the decliners.