Attacks Against Energy Infrastructure In The Middle East Continued. Stocks Declined.

Stocks declined on the first day of a shortened market week as attacks against energy infrastructure in the Middle East continued.

The tech-heavy Nasdaq Composite fell 0.32%, while the S&P 500 did so 0.58%. The Dow Jones Industrial Average underperformed, plunging 1.17%.

In contrast, oil prices climbed again, particularly after Iran-backed Houthi rebels launched a large-scale attack against Saudi Arabia.

Brent crude, the international benchmark, gained 1.79% and clocked in at $98.73 per barrel at 3:53 a.m. ET, while West Texas Intermediate, the U.S. benchmark, did so 2.42% and stood at $93.69 at the same time.

The Houthis said they attacked four cities and oil facilities south of Riyahd, specifically targeting the Khamis Mushait airbase and assets belonging to state-owned oil company Aramco.

Saudi authorities confirmed the attack, saying over 70 people, including women and children, had been wounded. Its forces then retaliated with air strikes east of Yemen's capital, Sanaa, which is controlled by the Houthis.

Elsewhere, a new survey showed that almost a third of Americans expect their financial situation to get worse next year.

Conducted by the New York Federal Reserve, the latest instance of the Survey of Consumer Expectations showed that respondents who expect their finance to get much or somewhat worse in the next year climbed 2.3 percentage points, clocking in at 32.6% compared to 30.3% last month.

Those claiming their financial situation was much or somewhat worse than a year ago climbed to 38.6%, compared to 37.6% in July.

Looking at inflation, median expectations were unchanged for the one-year- and five-year-ahead horizons, standing at 3.6% and 3%, respectively. For the three-year-horizon, the figure decreased by 0.1 percentage point, standing at 3.2%.

Households also expect their expenses to increase more than their income. The median expected growth in income remained unchanged at 3%, while spending growth expectations increased by 0.3 percentage points, standing at 5.2%.

The report also showed that over 13% of respondents believe there is a chance they will miss a minimum debt payment in the next three months. It is an increase of 1.2 percentage points compared to last month's survey.

The decline in expectations is in line with the latest edition of the University of Michigan's survey of consumers, which showed a significant 6% month-over-month drop.

The figure stood at 51.7, compared to 55.2 in July and 58.2 in August of last year. Surveys of Consumers Director Joanne Hsu said the reading shows "continued worries that inflation will remain elevated for the foreseeable future."

"Expected year-ahead business conditions fell back 10%, along with a 13% drop for the five-year horizon. Any re-escalation of trade tensions will likely exacerbate these trends," Hsu said.