US stocks fell slightly on Wednesday after stronger-than-expected jobs data helped ease the negative sentiment created by escalating tensions in the Middle East, as well as disappointing news from sportswear giant Nike.
By 09:35 Greek time (13:35 Greek time), the Dow Jones Industrial Average contract was down 30 points, or 0.1%, the S&P 500 index was trading 20 points, or 0.4% lower, and the NASDAQ Composite was down 55 points or 0.3%.
ADP employment rises more than expected
ADP’s national jobs report, released earlier Wednesday, showed U.S. private payrolls rose more than expected in September, offering more signs that the country’s labor market remains in fairly healthy shape.
Private payrolls rose by 143,000 jobs last month, following an upwardly revised 103,000 increase in August.
That was above the 120,000 job gain forecast for last month, following a previously reported increase of 99,000 in August.
The ADP report was released ahead of Friday’s closely watched September employment report from the Labor Department’s Bureau of Labor Statistics, which is likely to guide market sentiment ahead of the Federal Reserve’s next meeting later this month. .
The Middle East is affected by the risk climate
Key indicators were in negative territory, however, after Iran fired missiles at Israel late Tuesday night in retaliation for Israeli strikes against Lebanon-based Hezbollah.
Israeli Prime Minister Benjamin Netanyahu vowed to retaliate against Tehran’s airstrikes, saying in a statement that Iran “made a big mistake” and “will pay for it.”
The US also said there would be “severe consequences” for Tehran’s actions, with Defense Secretary Lloyd Austin adding that Washington was “well prepared” to defend its interests in the Middle East.
Although the situation has the potential to deteriorate further, UBS expects it to “stop short of an all-out war between Israel and Iran, including their respective allies.”
Nike retreats after forecast withdrawn
Shares of Nike (NYSE:NKE) fell more than 7% after the U.S. sportswear maker withdrew its full-year financial guidance and posted a 10% drop in quarterly revenue.
The results come as Nike undergoes an executive reshuffle, with boss John Donahoe replaced by company veteran Elliott Hill. Donahoe had overseen a period of weak performance fueled by fierce competition in the $150 billion-a-year global athletic shoe market.
Shares of Humana ( NYSE:HUM ) fell 23% after data showed the percentage of the health insurer’s members enrolling in four-star or higher Medicare plans next year fell sharply.
Shares of Tesla ( NASDAQ:TSLA ) fell more than 3% after the EV maker reported third-quarter vehicle deliveries below estimates as incentives and low-cost financing failed to boost demand for its aging models in a highly competitive market.
Crude is soaring due to turmoil in the Middle East
Oil prices jumped on Wednesday as escalating tensions in the Middle East raised concerns about a possible hit to output from the oil-rich region.
By 09:35 GMT, Brent was up 3.1% at $75.84 a barrel, while U.S. crude futures (WTI) were trading 3.4% higher at $72.22 a barrel . Both crude benchmarks rose more than 5 percent on Tuesday after Iran attacked Israel.
Elsewhere, U.S. crude inventories fell by about 1.46 million barrels for the week ended Sept. 27, compared with expectations for a decline of about 2.1 million barrels, according to data from the American Petroleum Institute.
The official government report on stocks is expected to be released later in the session.
At Bro In Finance, we are committed to helping traders navigate the complexities of the forex market. Our in-depth analysis, expert insights, and advanced tools empower you to make informed decisions and achieve your trading goals. Whether you’re a beginner or an experienced trader, Bro In Finance is your trusted partner in mastering the forex market. Visit our website for more trading tips and strategies to enhance your trading experience.
Check out our on Best Forex Brokers to know more about this topic
Check out the most crucial steps that you need to take when choosing your forex broker
Have you heard about an amazing Broker Platform called “AVATRADE“? We at Bro In Finance do recommend this amazing broker.
Check out here to figure out the best funded trader program: Which Funded Challenge is Best
Reference;
Nurse, P. (2024) US stocks edge lower; ADP payrolls stronger than expected By Investing.com, Investing.com. Investing.com. Available at: https://www.investing.com/news/stock-market-news/us-stock-futures-fall-on-raised-middle-east-tensions-nike-adp-payrolls-in-focus-3644486 (Accessed: 2 October 2024).
