economy online news

Wall Street stocks closed higher on Monday, bouncing back from an earlier slump as traders assessed uncertainties surrounding the deadly conflict between Hamas and Israel. onlline news

US stocks initially slipped after the weekend’s surprise attack by Palestinian militant group Hamas on Israel, which announced it would impose a total siege on the Gaza Strip on Monday.

At least 800 people have been killed in Israel since the surprise offensive and more than 680 people have died on the Gaza side, after Israel launched air strikes on the Palestinian enclave in response.

Despite fears that the conflict could escalate, markets shook off pressure and closed higher, while oil prices surged on worries of growing unrest in the crude-rich Middle East.

The Dow Jones Industrial Average was up 0.6 percent at 33,604.65.

The broad-based S&P 500 Index also rose 0.6 percent to 4,335.66, while the Nasdaq Composite Index advanced 0.4 percent to 13,484.24.

Shares of key defense and oil companies jumped, with Lockheed Martin closing around nine percent higher.

Northrop Grumman Corp rose 11.4 percent and Exxon Mobil picked up 3.4 percent.

“Historically, military shocks on their own have tended to be short lived,” said CFRA Research chief investment strategist Sam Stovall.

“Even though oil prices spiked by 4.3 percent on the first trading day after the attack, the US dollar weakened and share prices rose, implying that traders think this military shock will also likely not trigger a new bear market,” he told AFP.

Comments by a Federal Reserve official that interest rates may not need to rise further also helped support shares, said Stovall.

bys/des