The terror attacks in Paris are expected to spur a flight-to-safety trade this week, in markets that are already risk averse.
The coordinated attacks, which left more than 100 dead and hundreds others injured, prompted French President Francois Hollande to order new air strikes in Syria.
Analysts said the environment should play into the hands of traditional safe-haven assets.
"Obviously this is an incredible tragedy, and you have a heightened sense of insecurity by investors and people around the world and when that happens you have a flight to safety. You should have a run on an already strong dollar," said Art Hogan, chief market strategist at Wunderlich Securities. Hogan expects continued selling in stocks and a bid in Treasurys.
"The markets were heading into a trade of consolidation. We were worried about an ongoing collapse in commodities markets caused by a stronger U.S. dollar and concerns about the pace of the global economy," Hogan added. "The big concerns are how strong does the dollar get and what does that hurt, including commodities."
ISIS also claimed responsibility for two other incidents in the last two weeks, including bombings in Beirut and the downing of Russian airliner over Egypt.