U.S. stocks fall as Middle East concerns weigh

U.S. STOCKS FALL AS MIDDLE EAST CONCERNS WEIGH (1005 EDT/1405 GMT)

Wall Street's main indexes are lower early on Monday on concerns about a deepening conflict between Israel and the Palestinian Islamist group Hamas, while the U.S. bond market was closed for Columbus Day, offering some relief from relentlessly rising yields.

Israel said on Monday it had called up an unprecedented 300,000 reservists and warned residents of parts of the Gaza Strip to leave, in the latest signs it could be planning a ground assault to defeat Hamas.

Fighters were still holed up in several locations inside Israel two days after they burst across from Gaza killing 700 Israelis and seizing dozens of hostages.

The Nasdaq Composite IXIC is the worst performing major index, falling by 0.6%, while the S&P 500 SPX is off 0.25%.

Sector wise, consumer discretionary S5COND is the weakest performer, while energy SPN is leading gainers.

Here is an early market snapshot:

(Karen Brettell)

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S&P 500 INDEX: POISED TO FALL, BUT TRADERS EYE STRONG SUPPORT (0900 EDT/1300 GMT)

U.S. stock index futures are under pressure on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets.

E-mini S&P 500 futures ES1! are suggesting the S&P 500 index SPX, which ended Friday at 4,308.50, is poised to drop around 30 points, or 0.7% at the open.

With this, traders continue to eye numerous levels around 4,200, which suggest the area may prove to be particularly strong support:

On Tuesday and Friday of last week, the SPX's lows were at 4,216.45 and 4,219.55. These levels were just above the rising 200-day moving average, which ended Friday just over 4,208.

A rising weekly Gann Line should be around 4,204 this week.

The 23.6% Fibonacci retracement of the March 2020-January 2022 advance is at 4,198.70, and the early February 2023 high was at 4,195.44. The 100-week moving average (WMA) resides around 4,190.

Additional support is at the rising 50-WMA. This moving average should ascend to around 4,175 this week. The 50% retracement of then SPX's 2022 decline is at 4,155.10.

On the upside, the 61.8% Fibonacci retracement of the 2022 decline is now a hurdle at 4,311.69.

A thrust above chart congestion running from 4,324 to 4,339, however, may suggest a more extensive turn higher is underway.

(Terence Gabriel)

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