In fairness to the PA, Palestine has an approximately 0% chance of winning a war against Israel. And an approximately 100% chance of them getting blown to pieces if they ever had an attack successful enough for Israel to fully mobilize against them (see Gaza).
Their most likely to succeed strategy would be pursuing victory through the Israeli court system (which was relatively on their side, leading to the attempted “court reform” power grab that was the political story in Israel prior to October 7). Their next best bet would be Israeli politics moving away from the current right wing nationalist coalition.
That is not to say that any of the above is easy, or likely to succeed. But at least it has a plausible chance. And, if it fails, that failure still leaves them better off than a war against Israel.
Volatility has always been built into investing, including index funds.
If retirement is a long way away, then this is a non event. If retirement is close and your 401k was in a target date fund, you are heavily invested in bonds at this point, precisely to deal with this sort of situation.
If you are close to retirement, and heavily weighed to tech heavy indecies, then this will probably delay your retirement a few years. If you’re already retired and so invested, you may have a problem.