Stock Market Resilience Amid Middle East Turmoil

U.S. stocks saw minimal change on Monday despite initial drops after U.S. and Israeli airstrikes in Iran. Investors bought dips, focusing on stable stocks like Nvidia, expecting limited disruption. Meanwhile, global markets fell amid oil price hikes and rising defense shares and energy prices, affecting travel sectors.

U.S. stocks closed nearly flat on Monday following earlier volatility sparked by U.S. and Israeli airstrikes in Iran, which killed Tehran's Supreme Leader. The strikes sent global markets into turmoil, with oil prices surging and overseas stock indexes mostly down.

Despite the morning selloff, U.S. investors engaged in bargain hunting, suggesting confidence that the conflict's impact will be short-lived. "Market participants think this is all just temporary," said Bill Smead of Smead Capital Management.

In contrast, European and Asian markets struggled under increased oil prices and war-related uncertainty. While energy companies benefited, travel stocks faced pressure from higher fuel costs and flight disruptions.

(With inputs from agencies.)