Middle East Attacks Send Stocks Reeling Amid Rising Oil Prices

Stocks declined across the board on the first day of a shortened market week as attacks against energy infrastructure in the Middle East continued. The Nasdaq Composite fell 0.32%, while the S&P 500 did so by 0.58%. The Dow Jones Industrial Average underperformed, plunging 1.17%.

Oil prices climbed again, particularly after Iran-backed Houthi rebels launched a large-scale attack against Saudi Arabia. Brent crude, the international benchmark, gained 1.79% and clocked in at $98.73 per barrel at 3:53 a.m. ET. West Texas Intermediate, the U.S. benchmark, did so by 2.42% and stood at $93.69 at the same time.

The Houthi rebels said they attacked four cities and oil facilities south of Riyadh, specifically targeting the Khamis Mushait airbase and assets belonging to state-owned oil company Aramco. Saudi authorities confirmed the attack, saying over 70 people, including women and children, had been wounded. Its forces then retaliated with air strikes east of Yemen's capital, Sanaa, which is controlled by the Houthis.

Meanwhile, a new survey showed that almost a third of Americans expect their financial situation to get worse next year. The New York Federal Reserve's Survey of Consumer Expectations found that respondents who expect their finances to get much or somewhat worse in the next year climbed 2.3 percentage points, clocking in at 32.6% compared to 30.3% last month.