US stock futures were trading lower on Sunday evening amid an early flight to safety following a Hamas attack on Israel over the weekend. By 6:40 PM ET, Dow futures had fallen 0.59%, S&P 500 futures were down 0.67%, and Nasdaq futures had lost 0.58%.
The attack on Israel has raised concerns about a potential escalation in the Middle East conflict, which could have a negative impact on global markets. Oil prices surged on Sunday, with Brent crude rising above $85 per barrel for the first time since July.
Investors will also be keeping a close eye on the upcoming earnings season, which kicks off in earnest next week with reports from JPMorgan Chase and Delta Air Lines. Analysts are expecting to see a decline in profits for the S&P 500 in the third quarter, as companies grapple with rising costs and a weaker global economy.
In other news, activist investor Nelson Peltz has increased his stake in Disney and is seeking a board seat for himself, according to a report in The Wall Street Journal. Peltz has been critical of Disney's management in the past and is likely to push for changes to the company's strategy.
Citigroup is also reportedly in talks to sell its China consumer wealth business to HSBC. The deal, which is expected to be announced in the coming weeks, would be the latest sign of a retreat by foreign banks from the Chinese market.
Overall, the stock market is likely to remain volatile in the coming weeks as investors try to navigate a number of risks, including the potential for a recession, rising interest rates, and geopolitical tensions.
What does this mean for investors?
Investors should be prepared for a volatile stock market in the coming weeks and months. It is important to have a diversified portfolio and to invest for the long term. Investors may also want to consider investing in defensive sectors, such as consumer staples and healthcare, which tend to outperform the market during downturns.