Palestinian presidency condemns Houthi attacks on Saudi Arabia

Oil prices surged on Monday following Iran-backed Houthi rebels' additional strikes on Saudi Arabia, raising concerns about global supply tightness ahead of the northern hemisphere winter. The Riyadh airport witnessed a series of powerful explosions, resulting in at least 18 deaths. Oil prices climbed by approximately two percent, while global equity markets experienced a mixed performance as investors anticipated key US corporate earnings and economic data later in the week.

CFRA Research's Sam Stovall conveyed that investors were anxiously awaiting confirmation if the market's new all-time high in the S&P 500 was justified. Stovall emphasized that the upcoming inflation data would be crucial, potentially prompting another Federal Reserve interest rate hike in October if it turned out to be unexpectedly high.

Saudi Arabia's energy minister acknowledged that the kingdom's infrastructure had been put to the test due to the ongoing attacks, asserting that energy security should not be taken for granted. Meanwhile, doubts surrounding US President Donald Trump's claim of an "energy ceasefire" between Ukraine and Russia further unsettled investors.

Russia flatly denied signing an agreement with Ukraine to cease attacks on energy infrastructure, despite Trump's unilateral announcement of an energy truce. Ukrainian President Volodymyr Zelensky reported that Russia had struck six energy facilities in Ukraine on that day alone, causing 33 casualties. The week also marked the beginning of US corporate earnings season, with major banking and tech companies set to unveil their financial results.

Analysts forecast a 24.3 percent increase in earnings per share for S&P 500 companies compared to the third quarter of 2025. The S&P 500 declined by 0.1 percent to 7,807, the Dow rose by 0.4 percent to 51,850, and the Nasdaq fell by 0.4 percent to 27,245.