New York, NY – Investors on Wall Street faced a tumultuous day on Tuesday as US stock prices continued to decline amid growing concerns over a potential missile strike from Iran against Israel. The Dow Jones Industrial Average dropped roughly 0.8%, while the S&P 500 fell about 1.2%, following fresh record highs achieved just the day before. The tech-heavy Nasdaq Composite saw even steeper losses, plummeting around 1.7% in early trading.
Investor sentiment was also influenced by the release of new economic data, which included data showing an increase in job openings in August. The Labor Department reported that there were 8.04 million job openings at the end of August, up from 7.71 million in July. Additionally, the manufacturing sector held steady in September, with the Institute for Supply Management (ISM) reporting a manufacturing PMI of 47.2. While this reading indicated no change from the previous month, a PMI below 50 suggests contraction in the manufacturing sector.
Investors are closely monitoring these economic indicators for insights into the future path of the Federal Reserve’s monetary policy. Federal Reserve Chair Jerome Powell has indicated that the central bank is not in a rush to cut rates aggressively, and investors are awaiting Friday’s September jobs report for further clarity on the state of the US economy.
In addition to economic data, market participants are also keeping a close eye on a strike by dockworkers on the East and Gulf coasts, which could disrupt a significant portion of ocean shipping in the US. The potential halt in shipping could have far-reaching effects on the economy, including inflated costs, job losses, and potential political implications.
Elsewhere, Stellantis, the parent company of Jeep, experienced a drop in its stock value after issuing a recall for over 150,000 hybrid Jeep SUVs due to a fire risk. This comes on the heels of a previous decline in the company’s stock following a pessimistic outlook for its North American operations. Analysts are closely monitoring Stellantis’ actions as they navigate challenging conditions in the global auto industry.
Barclays analyst Tim Long issued a critical note on Apple, citing weak demand for the new iPhone 16 models. Long highlighted supply chain constraints and softer demand in key markets like the US and China, leading to a sell-off in Apple stock. The tech giant is facing challenges in meeting sales expectations for its latest smartphone models, raising concerns among investors.