US Markets
Monday, October 9th, 2023 10:43 pm EDT
Key Points
- Pentagon’s Coordination for Expedited Weapon Orders: The Pentagon has announced its coordination with U.S. defense companies to accelerate the delivery of pending weapon orders to Israel as violence escalates in the region due to a terror attack by Hamas. Specific details regarding the nature of assistance were not disclosed, but the effort is aimed at providing critically needed munitions and equipment to Israel.
- U.S. Military Response and Deployment: Secretary of Defense Lloyd Austin has ordered the repositioning of U.S. military assets closer to the region to bolster Israeli security assistance. This includes the movement of the USS Gerald Ford Carrier Strike Group and the augmentation of U.S. Air Force fighter aircraft squadrons in the area.
- Ongoing Conflict and U.S. Involvement: The article highlights the ongoing conflict between Israel and Hamas, with Israeli retaliatory airstrikes in response to a terror attack. Israeli Prime Minister Benjamin Netanyahu characterized the attack as a “terrible mistake” and warned of further strikes. The conflict has resulted in casualties, including 11 U.S. citizens, with some American citizens still unaccounted for. President Joe Biden has directed his team to work closely with Israeli counterparts on addressing the hostage crisis and sharing intelligence. Despite concerns related to the conflict, U.S. stock markets performed well, with notable gains in energy stocks due to a 4% increase in oil prices.
The Pentagon has announced its coordination with U.S. defense companies to expedite the delivery of pending weapon orders to Israel as violence escalates in the region following a weekend terror attack by Hamas. While specific details were not disclosed, the Defense Department is working rapidly to supply critically needed munitions and equipment. Military cargo planes carrying security assistance have already departed from the United States to the region. Defense industry stocks saw broad gains in response to this news, with the iShares U.S. Aerospace & Defense ETF surging by 4.5%, and Northrop Grumman rising by 11%.
The Pentagon’s efforts come as Secretary of Defense Lloyd Austin ordered U.S. firepower to be moved closer to the region to support Israeli security. The USS Gerald Ford Carrier Strike Group, along with various fighter aircraft squadrons, is being deployed to the eastern Mediterranean. The conflict, initiated by an unprecedented attack on Israel over the weekend, has led to Israeli retaliatory airstrikes. Prime Minister Benjamin Netanyahu referred to the attack as a “terrible mistake” and warned of more strikes to come.
The ongoing conflict has resulted in casualties, with over 1,300 people killed, including 11 U.S. citizens. Some American citizens remain unaccounted for, prompting President Joe Biden to work closely with Israeli officials on hostage recovery efforts. Despite concerns related to the Israel-Hamas conflict, U.S. stock markets largely performed well, with the Dow Jones Industrial Average gaining nearly 200 points and the S&P 500 climbing by 0.6%. Energy stocks also rallied due to a 4% increase in oil prices, with Exxon Mobil and Occidental Petroleum among the notable gainers.
For full original article on CNBC, please click here: https://www.cnbc.com/2023/10/09/israel-hamas-war-pentagon-pushes-us-defense-titans-to-send-weapons.html
