Week of 10/09-10/13 Israel-Hamas War Impact on Wall Street Deepens

Recent geopolitical tensions in the Middle East have impacted oil and stock prices in the U.S. stock market. This comes as a result from the Hamas group attack earlier this week on the Israeli people, and Israel responding by implementing an offensive operation around the Gaza region. While the Gaza area is not a major producer of oil, fear lingers on the effects of this war creating political tensions that may disrupt oil operations. The crude oil barrel market experienced increased volatility this week with swings from $5 to $90 per barrel. Defense stocks experienced a rise in price for the overall sector this week, as this tends to happens when war or conflicts are in effect. The stock market indexes finished lower on Friday, except for the Dow Jones Industrial Average, but this marks a second positive week for stocks overall. September's consumer sentiment economic data was released early Friday with results implying that inflation will remain elevated month over month. Banks officially kicked off earnings season with upbeat profits with strong results from Wells Fargo and JP Morgan posting higher than expected results. Banks seem to be benefiting from rising interest rates as customers continue to borrow, even at high interest rates, and allocate additional expenses on their credit cards. Remain vigilant on the upcoming bank earnings reports as this information may signal how well prepared banks are for upcoming FED action on interest rates.