New York, NY – US stocks took a hit on Tuesday following reports of Iran launching over 100 ballistic missiles towards Israel. The Dow Jones Industrial Average traded just below the flat line, while the S&P 500 fell about 0.6%. The tech-heavy Nasdaq Composite experienced a loss of more than 1.1%.
The missile strike pushed oil prices for West Texas Intermediate and Brent to their highest level in almost a year, with WTI rising over 5% and Brent climbing around 5%. This news, combined with new jobs and manufacturing data, raised concerns among investors about the future of the Federal Reserve’s easing cycle.
In August, job openings unexpectedly increased, reaching 8.04 million, indicating that although the labor market is cooling, it is not rapidly slowing down. Manufacturing in the US held steady in September, with the Institute for Supply Management reporting a PMI of 47.2, still considered weak as it remained below 50.
Investors are closely watching economic data, with the September jobs report being a highlight of the week. Concerns over a potential escalation of tensions in the Middle East have also impacted the markets, with oil prices spiking on the news of the missile strike by Iran.
Meanwhile, a strike by dockworkers on the East and Gulf coasts poses a threat to the US ocean shipping industry, potentially costing billions of dollars per day. Despite the risks associated with the strike, some economists do not expect it to fuel inflation, citing factors such as softening consumer demand.
In premarket trading, Stellantis stock dropped after a recall of over 150,000 hybrid Jeep SUVs due to a potential fire risk. The automaker recently issued a less optimistic outlook for its North American operations, forecasting lower profit margins for the year.
Barclays analyst Tim Long criticized Apple in a recent note, highlighting weak demand for the iPhone 16. Long noted a decrease in global iPhone 16 sales and softer demand compared to previous models.-awaiting confirmation from the company regarding supply chain constraints and weaker-than-expected demand.
Overall, market participants remain cautious amid geopolitical tensions and economic uncertainties, monitoring key data releases and company developments for potential impacts on various sectors and industries.