Palestinians take control of an Israeli tank after crossing the border fence with Israel from Khan Yunis in the southern Gaza Strip.
Said Khatib/AFP via Getty Images
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In today’s big story, we’re looking at the impact the Hamas-Israel conflict will have on the broader global economy.
What’s on deck:
Markets: Everything holding back the current bull market from really taking off.Tech: Lyft’s CEO sounds off on Big Tech’s responsibility to help us feel less lonely.Business: All the best deals for Amazon’s October Prime Day sales.
But first, unrest in Israel.
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The big story
Yasser Qudih/Getty Images
After Hamas’ unprecedented assault on Israel, the world is watching to see how the war will reverberate around the globe.
The initial attack, which some described as “Israel’s 9/11,” and Israel’s response have already led to hundreds of deaths among Israelis and Palestinians. For more on why Hamas attacked Israel after decades of conflict, it’s worth reading Tom Porter’s insightful analysis.
Beyond the loss of human life, which is always the most significant toll paid during these events, there are countless knock-on effects.
Here’s a breakdown of what the Hamas-Israel war could mean for everything from the oil market to social media:
Said Khatib/AFP via Getty Images
Oil: When a conflict in the Middle East arises, the oil industry is often quick to react. On Monday, prices jumped as much as 5% over fears of supply disruptions. In the long term, legendary commodities trader Pierre Andurand said the conflict will force the market to “beg” Saudi Arabia for more supply. It’s just the latest in what has been a volatile time for oil prices, clouding the inflation outlook.
Markets: Israel’s currency tumbled to a 7-year low, and its central bank has sold off $30 billion in foreign reserves to prop it up. Russia’s ruble also hit an 18-month low against the US dollar. On the other hand, defense sector stocks like Northrop Grumman, General Dynamics, and Lockheed Martin all rose.
From the price of gold to Wall Street’s fear gauge (the VIX), DataTrek Research highlighted five key indicators to watch regarding other potential impacts. Meanwhile, high-profile investors like Pershing Square’s Bill Ackman and Social Capital’s Chamath Palihapitiya have weighed in on the war and its risks.
Social media: The attacks have put social media’s flaws back under the microscope. Elon Musk recommended his followers get updates on the war from two accounts that have previously peddled misinformation. Insider’s Hasan Chowdhury gave an overview of the deluge of misleading information regarding the war on social media.
Foreign policy: The US has already said it will send F-35 and F-15 jets to the Middle East to prevent the war in Israel from escalating. Ret. Gen. Barry McCaffrey suggested the US would “go to war” in Israel if Syria or Iran became actively involved. Meanwhile, a Washington-based think tank said Russia will use the conflict to generate propaganda to undermine the West’s support for Ukraine.
3 things in markets
Treasury Secretary Janet Yellen.
Chip Somodevilla/Getty Images
US Treasury Secretary Janet Yellen: The bond market is just fine. Despite the market’s massive sell-off and spiking yields, Yellen said it’s business as usual. There is no “evidence of dysfunction” regarding how the market is operating, she said Monday.
US stocks are too pricey for billionaire Ray Dalio. The founder of Bridgewater Associates highlighted mounting debt, political infighting, and geopolitical risks as reasons investors should be cautious. “Over the next year, we will have a great political conflict,” he predicted.
This bull market isn’t turning heads. The stock market rally since October 2022 has been one of the weakest bull markets on record. Elevated valuations and monetary tightening policies have kept things from taking off.
3 things in tech
Dadu Shin for Insider
Big Tech made America lonely. Technology made staying home a lot easier: shopping, watching movies, and even eating outside food. This convenience has diminished our social connections. Although tech contributed to this problem, the industry has an opportunity to help solve the “antisocial epidemic,” Lyft CEO David Risher writes for Insider.
Meta is reportedly paying celebrities as much as $5 million for six hours of work. The tech giant hired a variety of celebs for its AI chatbots, including MrBeast, Kendall Jenner, Naomi Osaka, Charli D’Amelio, and Tom Brady. And Meta reportedly shelled out big bucks for the big names.
The AI 100 2023: The top people in artificial intelligence. The list ranges from people pushing boundaries in the field to those who are trying to ensure that AI develops steadily and responsibly. Meet them all here.
3 things in business
Amazon
All the best October Prime Day deals. The live blog tracks the hottest deals across tech, home, kitchen, and more.
CEO Bob Iger is under more pressure to break up Disney. Activist investor Nelson Peltz has reportedly upped his stake in the company. This could mean Disney is on track to sell assets like ESPN and ABC.
The surge in energy-hungry data centers is delaying green energy pushes. In Phoenix, data centers have attracted attention for the noise they blare, the water they guzzle, and the swaths of land they’ve consumed. Now, it’s impeding green efforts to end the use of fossil fuels.
In other news
Family feud: The Kennedy family immediately condemned RFK Jr.‘s independent presidential campaign.
Leaked documents revealed TikTok‘s plan for Black Friday, including marketing credits for sellers.
“I quit my $370K job at Meta after having panic attacks and hitting the lowest point of my life.”
Some unique methods that employees and companies are using to make the four-day workweek happen.
Passengers with canceled flights could redeem part of the Delta Air Lines $27 million settlement.
A partner at McKinsey wants to debunk “the myth of massive and widespread Black economic progress.”
Hybrid work could be a win-win if employers handle it correctly.
Meta CEO Mark Zuckerberg is reportedly “afraid of Apple” right now.
What’s happening today
It’s the first day of the National Hockey League regular season. There are three games today: Seattle Kraken vs. Vegas Golden Knights, Nashville Predators vs. Tampa Bay Lightning, and Chicago Blackhawks vs. Pittsburgh Penguins.
Amazon Prime Big Deals Days (also known as the October Prime Day) kicks off today. The two-day sale spans 19 countries and you can expect to see deals across different categories. Follow our live blog for all the best deals.
Earnings today: PepsiCo and other companies.
For your bookmarks
Delta’s LAX Sky Club
Brady MacDonald/Insider
Photos show Delta’s LAX Sky Club, which overlooks Hollywood Hills. It’s filled with LA-themed art and boasts amenities like a gelato machine, candy stand, and nacho/taco bar.
The Insider Today team: Dan DeFrancesco, senior editor and anchor, in New York City. Diamond Naga Siu, senior reporter, in San Diego. Hallam Bullock, editor, in London. Lisa Ryan, executive editor, in New York.