The US stock market closed on Wednesday, October 2nd, with a mixed bag of results. While the S&P 500 ended the day flat, technology stocks saw significant gains, largely fueled by the performance of Nvidia. Investors remained cautious, however, as tensions in the Middle East continued to simmer, and the release of key US labor data on Friday loomed large.
Tesla shares experienced a dip, drawing further attention to Friday’s crucial labor report. In a positive sign for the US economy, private businesses added 143,000 jobs in September, surpassing the revised August figure of 103,000 and exceeding market estimates of 124,000, according to ADP. While the tech sector closed higher, most other sectors of the S&P 500 ended the day in the red, with consumer stocks taking the lead in the decline.
The Dow Jones Industrial Average finished the day with a modest gain, closing at 42,196.52, up 0.09%. The S&P 500 rose 0.01%, finishing the session at 5,709.54, while the Nasdaq Composite closed at 17,925.12, up 0.08%.
Looking globally, Asian markets experienced a mixed bag of results on Thursday. Japan’s Nikkei 225 closed the day strong, up 2.01% at 38,552.50, driven by gains in the Mining, Chemical, Petroleum & Plastic, and Real Estate sectors. Australia’s S&P/ASX 200 also closed higher, up 0.09% at 8,205.20, with gains in the A-REITs, Telecoms Services, and Industrials sectors. India, however, saw a decline, with the Nifty 50 closing down 2.12% at 25,250.10 and the Nifty 500 falling 2.13% to 23,755.45. China’s markets were closed for the National Day holiday. Hong Kong’s Hang Seng index fell 1.47%, ending the day at 22,113.51.
Global stocks dipped as geopolitical tensions in the Middle East, particularly Israel’s bombing of Beirut, raised concerns about potential oil supply disruptions. Weak business data from Europe and mixed performances in Asia also contributed to the market downturn. Despite these pressures, Japan’s Nikkei rose, fueled by the new prime minister’s commitment to maintaining low interest rates.
As of 6:00 AM ET, the European STOXX 50 index declined 0.68%. Germany’s DAX was down 0.57%, France’s CAC fell 0.85%, and the U.K.’s FTSE 100 index traded higher by 0.23%.
At 6:00 AM ET, Crude Oil WTI was trading higher by 2.07% at $71.57/bbl, and Brent was up 1.91% at $75.31/bbl. The rise in oil prices was largely attributed to concerns over a potential widening Middle East conflict, which could disrupt crude supplies despite strong global supply levels. Israel’s airstrikes on Beirut heightened geopolitical tensions, but swelling U.S. crude inventories suggested the market remains well-supplied.
Natural Gas was up 1.00% at $2.915. Gold was trading lower by 0.15% at $2,665.30, Silver fell 0.60% to $31.730, and Copper declined 1.11% to $4.5970.
At 6:00 AM ET, Dow futures were down 0.33%, S&P 500 futures fell 0.32%, and Nasdaq 100 Futures slid 0.46%. U.S. stock futures dropped amid Middle East tensions and anticipation of the jobs report. Oil prices rose, while Levi Strauss (LEVI) and Tesla (TSLA) saw premarket declines.
At 6:00 AM ET, the U.S. dollar index rose 0.24% to 101.91, the USD/JPY rose 0.27% to 146.88, and the USD/AUD gained 0.56% to 1.4605.
