Here are the most important news items that investors need to start their trading day:
1. Feeling unmoored
Stock futures were lower Monday morning as a full-blown war broke out between Israel and Palestine on Saturday (more on that below), leaving investors feeling uncertain. The rising geopolitical tensions could have ramifications for the energy market and stroke further volatility in a market that's already seen its share of concerns with rising inflation and interest rates. The bond market is closed on Monday for Columbus Day, so traders will have to wait another day for an update on interest rates. The uncertainty comes after all three major indexes finished higher last week and after a hot jobs report that showed hiring remains robust. Follow live market updates.
2. Israel-Hamas war
Israel is reeling from the deadliest attack it's experienced in half a century after the militant organization Hamas carried out a surprise offensive early Saturday morning. More than 700 Israelis have been killed in what Hamas is calling Operation Al Aqsa Flood, and at least 490 Palestinians have been killed in retaliatory Israeli strikes on the Gaza Strip. The total number of deaths has surpassed 1,200, including foreign nationals. Hamas also took an unknown number of Israelis, both civilians and soldiers, during its hostilities. Israeli Prime Minister Benjamin Netanyahu has declared that his country is at war. Hamas is a designated terrorist group backed by Iran that has governed the Gaza Strip since 2007. Gaza, a small strip of land that is home to over 2 million Palestinians, is one of the most densely populated territories on Earth and has been kept under an Israeli land, air and sea blockade since 2007.
3. Another UAW strike
United Auto Workers members with Volvo Group-owned Mack Trucks are joining their colleagues on the picket line. Roughly 3,900 workers rejected a tentative agreement Sunday and voted to go on strike. They are covered by a different part of the union than the section that covers UAW members with GM, Ford and Stellantis, but the workers were expecting to receive similar increases and benefits as their union brethren at the Detroit automakers. More than 25,000 employees are currently striking the Detroit automakers. Mack Trucks had offered 19% wage increases, ratification bonuses, enhanced 401(k) company payments and other benefits. Meanwhile, the UAW opted not to expand strikes at the Detroit automakers for the first week since targeted walk-offs began on Sept. 15, saying the two sides are making progress.
4. The future of oil
Is the fossil fuel era drawing to a close? Or is the oil industry facing a surge in demand that will require trillions in investment? Two energy giants have two different answers. OPEC on Monday raised its medium- and long-term forecasts for global oil demand, saying the industry needs $14 trillion in investment to meet the growth. The group expects roughly 6 million more barrels per day than it predicted in last year's report, based on demand from India, China, other Asian countries, Africa, and the Middle East. But the International Energy Agency, the world's leading energy watchdog, predicts a peak in oil demand before 2030. Its leader called the current state the "beginning of the end" of the fossil fuel era. For now, oil prices are up, jumping more than 3% after the Israel-Hamas conflict erupted this weekend.
5. Alcohol from Mexico
On a lighter (beer) note: Mexican alcohol is more popular in the United States than ever. The U.S. is the largest market for Mexico's agave-based spirits and top beers, thanks in part to effective marketing, changing consumer trends and the growing Hispanic population in the U.S. Experts say Mexico's native agave-based spirits tequila and mezcal spirits are poised to pass vodka in 2023 to become the country's fastest-growing spirits category in terms of volume. Meanwhile, earlier this year, Constellation Brands' Modelo Especial dethroned Bud Light to become the best-selling beer in the country. Now, the industry is hoping to replicate this success overseas.
— CNBC's Brian Evans, Natasha Turak, Michael Wayland, Sam Meredith, Lee Ying Shan and Stefan Sykes contributed to this report.
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