Iran Retaliates with 300 Missiles and Drones in First Direct Attack on Israel, Stocks Remain Stable

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ICARO Media Group
Politics
14/04/2024 22h26

In a bold move of retaliation, Iran launched 300 drones and missiles towards Israel on Saturday night, marking the first direct attack on Israeli territory from Iranian soil. The attack comes in response to a suspected Israeli strike that killed top Iranian officials in Syria. Despite the heightened tensions in the Middle East, U.S. stock futures remained relatively stable on Sunday night.

Futures tied to the Dow Jones Industrial Average saw a slight increase of 48 points, or 0.13%. Similarly, S&P 500 futures rose by 0.14% and Nasdaq-100 futures recorded a slight uptick of 0.06%. This stability comes after the Dow Jones Industrial Average experienced its worst week of the year, with a loss of 476 points and the S&P 500 posting its worst day since January.

Meanwhile, the price of gold continued its upward trajectory, surging by another 0.4% on Sunday evening to reach over $2,384 an ounce. Investors have been flocking to the precious metal as a safe-haven asset amidst concerns of inflation and geopolitical tensions. Gold has now risen by 15% since the start of the year, hitting record levels last week.

The attack on Israel has raised concerns of a potential escalation in violence and its impact on global markets, particularly in the energy sector. However, experts suggest that risks to oil and markets may be slightly less than feared, given that Israel is urged by the Biden administration to exercise restraint in responding to the attack.

Some relief may be in store for the markets if Israel Prime Minister Benjamin Netanyahu heeds U.S. advice and refrains from immediate retaliation. However, the energy team predicts that a significant oil price retracement is unlikely. Oil prices, which had already been on an upward trajectory due to escalating tensions in the Middle East, saw a slight decrease on Sunday.

Amidst the geopolitical tensions, investors will also be closely watching the first-quarter earnings reports of Goldman Sachs and M&T Bank, which are scheduled to be released on Monday morning. Additionally, economic data including retail sales, business inventories for February, and manufacturing numbers for March will be released.

Last week, Treasury yields experienced a surge as a result of higher-than-expected inflation readings. However, rates eased on Friday as investors sought the safety of Treasuries amidst the geopolitical tensions. JPMorgan Chase, despite surpassing profit estimates in its first-quarter report, saw its shares drop by 6% due to concerns about future lending prospects and CEO Jamie Dimon's comments on the persistent inflationary pressures and the global landscape.

As the situation unfolds in the Middle East, investors and experts will keep a close eye on geopolitical developments and their potential impacts on global markets. The stability of U.S. stock futures amidst these uncertainties highlights investors' cautious approach, balancing concerns and potential opportunities.

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