A sponge and plastic factory in Sanaa, the Houthi-held Yemeni capital, was completely destroyed on Monday after being hit by a missile in the latest escalation between the Saudi-led coalition and Houthi forces.
In the attack in the western Shemlan district of Sanaa, one of those involved in fighting the fire suffered severe burns, but the factory's 32 employees escaped harm as they were not present at the time of the strike.
"We originally had a factory that had been operating for years with more than 40 workers. In 2019, the factory was hit by an airstrike. We resumed operations in 2025 after purchasing new machinery and equipment, and invested a total of 1.5 million U.S. dollars to build the facility and install the equipment here. Now, the factory has been completely destroyed in this attack," said Zaid Al-Qasimi, the factory owner. Yemen's conflict began in late 2014 when the Houthis seized the capital Sanaa and much of northern Yemen, prompting the Saudi-led coalition to intervene in March 2015 in support of the internationally recognized Yemeni government.
Yemen's economy had since been severely damaged. Many factories were forced to close and large numbers of workers were left unemployed, further worsening the humanitarian crisis. In April 2022, Yemen entered a fragile, phased ceasefire, bringing a brief easing of tensions, and some factory owners began repairing their facilities.
However, Yemen's conflict has recently entered one of its sharpest escalations in years, with heavy fighting spreading across southwestern Yemen and renewed missile, drone and air attacks reviving direct hostilities between the Houthis and Saudi Arabia.
There is growing concern that existing factories could become targets of attacks.
Airstrike destroys sponge factory in Yemeni capital
U.S. stocks closed higher on Monday, as strength in artificial intelligence and technology stocks overcame a renewed surge in Treasury yields to 24-year highs.
The Dow Jones Industrial Average rose 90.94 points, or 0.18 percent, to 51,267.90. The S and P 500 added 51.23 points, or 0.66 percent, to 7,773.95. The Nasdaq Composite Index increased by 286.45 points, or 1.05 percent, to 27,477.31, notching a record closing high.
Ten of the 11 primary S and P 500 sectors ended in the green, with materials and communication services leading the gainers by adding 1.22 percent and 1.14 percent, respectively. Real estate bucked the trend, losing 0.44 percent.
U.S. Treasury yields climbed back toward multidecade highs on Monday. The benchmark 10-year yield settled at 5.31 percent, its highest close since April 2002, after trading above 5.35 percent intraday. The 30-year yield rose 3.5 basis points to 5.66 percent, its highest settlement since May 2002. The two-year yield stood at 4.83 percent.
Oil prices fell as traders weighed the Group of Seven's agreement to release 100 million barrels of crude and diesel from emergency reserves, alongside recovering Middle East exports. The West Texas Intermediate for November delivery decreased by 1.68 U.S. dollars, or 1.84 percent, to settle at 89.43 dollars a barrel. Brent crude for December delivery lost 1.93 dollars, or 1.89 percent, to settle at 100.32 dollars a barrel.
On the corporate front, Nvidia rose more than 2 percent to a record high for the second straight session, remaining the world's most valuable public company. PTC soared 33.49 percent, the S and P 500's best performer, after Schneider Electric agreed to acquire it at 205 dollars per share in a 22.6-billion-dollar all-cash deal, a 42.3 percent premium. By contrast, Schneider fell nearly 10 percent.
SpaceX jumped over 7.5 percent after Morgan Stanley initiated coverage with an overweight rating and a 300-dollar target. Western Digital climbed over 6 percent and Seagate gained about 4.5 percent, rebounding from Friday's plunge on a Toshiba capacity report. Cerebras gained 9.08 percent after OpenAI's Sam Altman called it a "close partner."
On the economic front, the ISM services index for September came in at 54.9, down from 55.4 in August and roughly in line with expectations. Traders see about a 24 percent chance of a rate hike at the Fed's October meeting, down from 71 percent a week ago, according to CME FedWatch.
U.S. stocks close higher despite surging Treasury yields
