Stock markets today: Middle East caution grips investors as stocks slide

U.S. stocks fell on Wednesday as Israel-Iran tensions fueled concerns about an escalating Middle East conflict, prompting market caution.

The S&P 500 (^GSPC) fell about 0.3%, while the Dow Jones Industrial Average (^DJI) shed about 0.2%, as investors braced for Israel's promised retaliation for a massive missile attack by Iran. The Nasdaq Composite (^IXIC) was about 0.2% lower.

Stocks started under pressure in October as geopolitical concerns gripped markets, displacing upbeat moods surrounding hopes of a U.S. interest rate cut. At the same time, oil extended a rally that sent prices up more than 5% on Tuesday, the most in nearly a year.

Brent crude (BZ=F) and West Texas Intermediate (CL=F) futures both rose about 3% on Wednesday, as traders paid a premium amid the prospect of supply risks from heightened Israel-Iran attacks.

The focus is on the possibility that rising oil prices could boost US inflation, which could disrupt the Federal Reserve's progress. At the same time, tensions in the Middle East and the risk of US port strikes disrupting supply chains fueled concerns about the US economy — just as investors were becoming confident of a “soft landing.”

The latest ADP data released on Wednesday showed the private sector added 143,000 jobs in September, above economists' estimate of 125,000 and significantly higher than the 99,000 seen in August. The release follows mixed data on job openings and comes ahead of Friday's key September jobs report as investors discuss the Fed's interest rate-cutting path.

Read more: What Fed Rate Cuts Mean for Bank Accounts, CDs, Loans and Credit Cards

Meanwhile, Nike ( NKE ) shares fell 7% after the sports shoe giant cut its outlook for the year, as first-quarter revenue fell. “We haven't turned the corner yet,” its CFO told analysts on a conference call.

Tesla's ( TSLA ) global deliveries rose in the third quarter, but fell short of Wall Street estimates. Shares of the EV maker fell after the report.

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Wed, Oct 2, 2024 at 6:55 am PDT

Tesla's stock fell after the delivery was missed

Tesla ( TSLA ) stock fell more than 5% on Wednesday morning after the company announced third-quarter deliveries that fell short of Wall Street expectations.

The electric vehicle maker delivered 462,890 vehicles in the three months to September 30, up 6.4% from the previous quarter. That fell short of Wall Street expectations for 463,897 vehicle deliveries.
Wed, Oct 2, 2024 at 6:34 AM PDT

Stocks tend to slide at the open as oil prices rise

U.S. stocks fell further on Wednesday as Israel-Iran tensions fueled concerns about an escalating Middle East conflict, prompting market caution.

The S&P 500 (^GSPC) fell about 0.3%, while the Dow Jones Industrial Average (^DJI) shed about 0.2%, as investors braced for Israel's promised retaliation for a massive missile attack by Iran. The Nasdaq Composite (^IXIC) was about 0.2% lower.

The tension has caused oil prices to rise. Brent crude (BZ=F) and West Texas Intermediate (CL=F) futures both rose about 3% on Wednesday, as traders paid a premium amid the prospect of supply risks from heightened Israel-Iran attacks.
Wed, Oct 2, 2024 at 5:39 AM PDT

The private sector added more jobs in September than expected

New ADP data released on Wednesday showed the private sector added more jobs in September than expected. ADP chief economist Nella Richardson described it as a “pretty healthy and broad rebound” in hiring.

ADP's national employment report showed 143,000 jobs were added in the month, above economists' estimate of 125,000 and significantly higher than the 99,000 seen in August.