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Investing.com -- Energy, defense, shipping, and travel stocks are expected to see active trading on Monday as tensions between Israel and Iran continue for a fourth consecutive day with no signs of de-escalation.
Brent crude oil prices initially jumped as much as 5.5% to $78.32 a barrel before trimming most of those gains. The price movement could impact energy sector stocks including Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX), ConocoPhillips (NYSE:COP), Occidental Petroleum (NYSE:OXY), and EOG Resources (NYSE:EOG).
Shipping stocks may also see movement today. In European markets, AP Moller-Maersk rose 0.6% while Hapag-Lloyd AG gained 1.8%. U.S. shipping companies that could be affected include ZIM Integrated Shipping Services (NYSE:ZIM), Star Bulk Carriers (NASDAQ:SBLK), and Matson (NYSE:MATX).
Defense contractors and arms manufacturers, which moved higher on Friday as the conflict escalation signaled potential increased military spending, might remain active in Monday trading. Key defense stocks to monitor include Lockheed Martin (NYSE:LMT), Northrop Grumman (NYSE:NOC), RTX, General Dynamics (NYSE:GD), and L3Harris Technologies (NYSE:LHX).
Meanwhile, airline stocks may face pressure as rising crude prices typically lead to higher jet fuel costs, increasing operating expenses for carriers. Delta Air Lines (NYSE:DAL), United Airlines, American Airlines (NASDAQ:AAL), and Southwest Airlines (NYSE:LUV) are among the companies that could be affected.
On Friday, travel stocks declined while energy sector stocks rose as Israel conducted strikes against Iran.
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