US stock market: S&P 500, Dow advance as investors monitor Mideast conflict headlines
Wall Street's major indexes closed higher on Monday while energy stocks rallied as investors digested the latest news about the conflict between Israel and the Palestinian Islamist group Hamas.
The Israeli military said it called up reservists and was imposing a total blockade of the Gaza Strip in signs it could be planning a ground assault there to defeat Hamas which launched a deadly attack over the weekend.
But late in the afternoon, a senior Hamas official said the group is open to discussions over a possible truce with Israel. U.S. President Joe Biden said he directed his team to coordinate with regional partners to warn anyone seeking to take advantage of the situation.
News of the conflict sparked an oil rally due to supply concerns.
But stock indexes managed to reverse earlier declines with help of more dovish Federal Reserve official comments.
As a result investors appeared to refocus on more U.S. centric matters, John Augustine, said chief investment officer at Huntington National Bank in Columbus, Ohio.
«The stock market and investors are focused on two things, the economy and earnings. The U.S.
economy is not slowing and earnings are expected to come out of a recession with reports starting this week,» Augustine said.
«Those fundamentals are more powerful in the market than terrible geopolitical headlines from the weekend just as they were more powerful than a strong jobs report and worries about the Fed on Friday.»
The U.S. bond market was shut on Monday for Columbus Day, also known as Indigenous Peoples' Day.
A recent surge in U.S. Treasury yields had pressured equities.
