Hamas launched a surprise attack on Israel, sending shockwaves through global markets. As the conflict unfolds, various sectors with ties to Israel are witnessing significant impacts. Below is a breakdown of how different industries are responding:
The technology sector feels the tremors
The technology sector, particularly semiconductor giants such as Nvidia Corp. and Applied Materials Inc., is experiencing turmoil. Concerns are mounting about potential disruptions to Intel Corp.’s plans. Additionally, cybersecurity stocks including Datadog Inc. are closely monitored due to their connections to Tel Aviv-based Check Point Software Technologies Ltd.
The travel industry is affected
The travel industry is dealing with a sharp decline as several airlines have suspended flights to Israel. Major airlines such as Delta Air Lines Inc., United Airlines Holdings Inc. and American Airlines Group Inc. are among those affected. European carriers including Deutsche Lufthansa AG and Air France-KLM also canceled flights to Tel Aviv, sending their shares tumbling.
The pharmaceutical sector faces uncertainties
Global generic drug makers, such as Dr. Reddy’s Laboratories Ltd. and India’s Lupine Ltd., are under scrutiny due to potential fallout from industry giant Teva Pharmaceutical Industries Ltd. Stock performance in this sector varies, with Teva seeing a notable drop.
Oil and shipping industries respond to geopolitical tensions
Despite Israel’s relatively minor role in oil production, the conflict is driving up oil prices. This has a ripple effect on associated industries, particularly benefiting Asian producers such as Woodside Energy Group Ltd. and Santos Ltd. of Australia. Meanwhile, energy company Energean Plc is experiencing a significant drop in the value of its shares.
Increase in defense actions
In response to the conflict, defense stocks are increasing. The S&P 500 Aerospace & Defense Index has witnessed a substantial rise, with companies like Northrop Grumman Corporation, Lockheed Martin Corporation and L3Harris Technologies Inc. leading the way. General Dynamics Corp. and BAE Systems Plc are also seeing notable gains.
Israeli market players face fluctuations
Companies that invest heavily in the Israeli market are closely monitored. This includes entities such as Nanjing Xinjiekou Department Store Co. of China, U.S.-listed Taboola.com Ltd., Kenon Holdings Ltd. and Lanner Electronics Inc. of Taiwan. Its performance is subject to changes in market sentiment.
Gold mining gains ground
As geopolitical tensions rise, Asian gold miners, including Australia’s Newcrest Mining Ltd., are seeing a surge in demand for the precious metal. In contrast, the American miner Newmont Corp. remains relatively stable.
This unexpected development adds an additional layer of complexity to an already convoluted global financial picture. Investors and market observers are attentive to how these sectors will continue to evolve following the Hamas attack on Israel.
Also read: Israeli markets react to Hamas attack: stocks fall, companies close