US stocks undermined by Middle East jitters
US equity markets tumbled and crude prices surged on Wednesday as the growing Middle East turmoil prompted a broad sell-off and stoked oil supply concerns. All three major US stock indexes shed 1 percent or more.  US President Joe Biden arrived in Israel after an attack on a hospital in the Gaza Strip derailed plans for a diplomatic summit with Arab leaders as the Israel-Hamas conflict continued unabated. "The lack of certainty around the potential for escalation in the Middle East has a direct relationship with oil, which has downstream implications and could impact earnings," said Greg Bassuk, chief executive at AXS Investments in New York. "Investors have moved to a risk-off mentality on the combination of the war in Israel, uncertainty around chips and earnings, and Fed policy all taken together," Bassuk added. "These themes will be the investor narrative for the upcoming days, resulting in this see-saw market of ups and downs." A string of quarterly profit beats, specifically from Morgan Stanley and Procter & Gamble, along with a sharp rebound in US housing starts, failed to stir much upside sentiment. Elsewhere, Beijing reported that China's GDP grew at a faster-than-expected pace in the third quarter, suggesting the recovery of the world's second-largest economy is gaining traction. The Dow Jones Industrial Average fell 1.0 percent to 33,665, the S&P 500 lost 1.34 percent to 4,314. and the Nasdaq Composite dropped 1.6 percent to 13,314. European stocks also ended lower due to the Middle East jitters and worries about the semiconductor sector.  Oil prices rose as the mounting strife in the Middle East appeared to pose a growing threat to supply. US crude rose 1.9 percent to settle at US$88.32 per barrel, while Brent settled at US$91.50 per barrel, up 1.8 percent.  (Reuters)