Indexes: Dow down 0.4%, S&P 500 down 0.9%, Nasdaq down 1.5%
NEW YORK, Oct 1 (Reuters) – U.S. stocks fell on Tuesday with the Nasdaq losing more than 1% as investors became more cautious after Iran fired missiles at Israel.
Iran launched a salvo of ballistic missiles in retaliation for Israel's operation against Tehran's Hezbollah allies. In response, US President Joe Biden ordered the US military to assist Israel's defense and fire missiles at Israel, the White House's National Security Council said.
Shares of energy companies rose along with U.S. oil prices, which settled 2.4%, amid broader market declines. Shares of Exxon Mobil (XOM.N)A new tab opens Gained 2.3%.
Defense stocks also rose, including Northrop Grumman ( NOC.N ).A new tab openswhich rose 3% and Lockheed Martin increased by 3.6%. S&P 500 Aerospace & Defense Index (.SPLRCAERO)A new tab opens Climb to a record high. Utility (.SPLRCU)A new tab opens rose 0.8%.
Airline shares fell, including Delta Air Lines ( DAL.N ).A new tab openswhich was down 1.6%.
Investors shunned risks after the Middle East news, but indices ended the day at their lowest.
“If we see more growth, I see continued market weakness because we don't know how far it's going to go,” said Peter Tooze, president of Chase Investment Counsel in Charlottesville, Virginia.
“Risk levels are up. Markets have had a good year and depending on what happens in the next few weeks, people may be scared away from the market.”
Dow Jones Industrial Average (.DJI)A new tab opens The S&P 500 (.SPX) was down 173.18 points, or 0.41%, at 42,156.97.A new tab opens The Nasdaq Composite (.IXIC) lost 53.73 points, or 0.93%, to 5,708.75.A new tab opens Down 278.81 points, or 1.53%, to 17,910.36.
On Monday, the three major US indexes posted strong gains for September and the quarter.
A trader works on the trading floor at The New York Stock Exchange (NYSE) in New York City, U.S., on September 18, 2024. REUTERS/Andrew Kelly/File Photo Purchase Licensing the rightA new tab opens
CBOE's Market Volatility Index, a gauge of Wall Street's fear, (.VIX)A new tab opens the rose
Data released early Tuesday showed US job openings rebounded in August, with the Institute for Supply Management (ISM) reporting that manufacturing activity was 47.2 in September, up from estimates of 47.5.
Investors were also cautious ahead of US jobless claims data on Thursday and monthly payrolls on Friday.
Traders are pricing in a 38% chance the Federal Reserve will cut interest rates by 50 basis points in November, up from about a 35% bet on Monday but down from 58% a week ago, CME Group's FedWatch tool showed.
The US central bank cut rates by 50 basis points on September 18, starting a new easing cycle.
Investors also observed a port strike on the East Coast and Gulf Coast, halting the flow of ocean shipping in about half of the country.
The strike, which began on Tuesday, is not expected to be as deep or severe as the global supply problem as the COVID-19 pandemic, but still creates more economic uncertainty for Fed policymakers to assess.
The number of issues advanced to the NYSE decreased by a 1.32-to-1 ratio; On the Nasdaq, a 2.36-to-1 ratio favored decliners.
The S&P 500 posted 51 new 52-week highs and two new lows; The Nasdaq Composite recorded 75 new highs and 137 new lows.
Volume on US exchanges was 13.16 billion shares, compared to the full-session average of 11.98 billion over the past 20 trading days.
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Additional reporting by Johan M. Cherian and Purvi Aggarwal in Bengaluru; Edited by Mazu Samuel and Richard Chang
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