By Major stock indexes slid alongside bond yields on Tuesday.
Investors are pulling back amid escalating tensions in the Middle East. Less than a day after Israel confirmed its ground offensive in Lebanon, a White House official said Iran is preparing an imminent ballistic missile attack against Israel.
Crude oil spiked more than 3% to intraday highs on speculation the conflict will limit production. Traders also piled into safe-haven assets, sending gold up more than 1%. Meanwhile, the 10-year Treasury yield dropped 10 basis points as investors monitored the situation.
Here’s where US indexes stood at 10:40 a.m. on Tuesday:
- S&P 500: 5,701.98, down 1.1%
- Dow Jones Industrial Average: 42,068.50, down 0.6% (257 points)
- Nasdaq composite: 17,869.57, down 1.8%
US investors are also focused on economic data set to be released this week. The ADP employment report and initial jobless claims data will be released on Wednesday and Thursday, respectively.
The September jobs report will arrive on Friday, with economists forecasting 150,000 jobs added for the month. Unemployment is projected to stay flat at 4.2%.
A strike affecting US ports on both the East and West Coasts is also drawing trader attention this week, as analysts start to caution about macroeconomic impacts.
Here’s what else happened today:
- The equity market faces a 10% correction as the labor market stalls, Stifel stock chief says.
- 3 cheap stock market sectors to snap up as the Fed delivers a stimulus ‘double whammy,’ according to BofA.
- Top Wall Street strategists await a strong jobs report to boost low-quality stocks.
- Here’s a preview of what Wall Street expects from Tesla’s upcoming third-quarter results.
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil jumped 3.2% to $70.36 a barrel.
- Gold increased 1% to $2,685.20 an ounce.
- The 10-year Treasury yield dropped 10 basis points to 3.71%.
