What is causing the markets to react on Monday as stocks stop gaining, while oil and treasuries rally in response to the Israel-Hamas conflict?

The conflict between Israel and Hamas resulted in heightened volatility in the markets at the start of the week. The death toll continued to rise, leading to a comprehensive blockade on the Gaza Strip. Crude oil was the most reactive asset, surging by nearly 4% as trading resumed. Investor risk appetite waned, leading to major stock indices flirting with negative territory. Bonds served as safe havens, with Treasury yields dropping significantly. The S&P 500 and Dow Jones held steady, while the Nasdaq 100 slipped and small caps outperformed. Walt Disney, Nvidia, and energy stocks like Exxon Mobil, ConocoPhillips, and Chevron saw notable movements. Defense stocks rallied due to concerns over a potential war. Mirati Therapeutics announced a deal with Bristol-Myers Squibb, while commodities and other global equity markets also saw shifts.