Stocks have moved sharply lower during trading on Tuesday, giving back ground after ending the previous session mostly higher. The major averages have all moved to the downside, with the Dow and the S&P 500 pulling back off yesterday’s record closing highs.
Currently, the major averages are off their lows of the session but still firmly negative. The Dow is down 246.18 points or 0.6 percent at 42,083.97, the Nasdaq is down 302.90 points or 1.7 percent at 17,886.27 and the S&P 500 is down 59.77 points or 1.0 percent at 5,702.72.
The sell-off on Wall Street comes amid concerns about escalating tensions in the Middle East after a senior White House official said the U.S. has indications Iran is preparing to imminently launch a ballistic missile attack against Israel.
“We are actively supporting defensive preparations to defend Israel against this attack. A direct military attack from Iran against Israel will carry severe consequences for Iran,” the official said in a statement.
The threat of a direct attack by Iran comes after Israel launched ground operations against the Iranian-backed militia group Hezbollah in southern Lebanon.
The price of crude oil has moved sharply higher on the heels of the news, with crude for November delivery spiking $2.01 or 3.0 percent to $70.18 a barrel.
Concerns about the economic impact of a strike by dockworkers at seaports across the U.S. East and Gulf Coasts may also be weighing on Wall Street.
Around 45,000 dockworkers went on strike after the United States Maritime Alliance and the International Longshoremen’s Association failed to reach a settlement on a new Master Contract.
The ILA union members hit the picket line at midnight after they rejected a wage package offered by the Ocean Carriers, represented by USMX, saying that it was unacceptable.
Sector News
Semiconductor stocks are turning in some of the market’s worst performances on the day, resulting in a 2.5 percent plunge by the Philadelphia Semiconductor Index.
Considerable weakness has also emerged among computer hardware stocks, as reflected by the 2.4 percent slump by the NYSE Arca Computer Hardware Index.
Banking stocks have also shown a significant move to the downside on the day, dragging the KBW Bank Index down by 2.0 percent.
Networking and software stocks have also come under pressure, contributing to the steep drop by the tech-heavy Nasdaq.
Airline and telecom stocks are also seeing notable weakness, while energy stocks are bucking the downtrend amid the sharp increase by the price of crude oil.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Tuesday, with several major markets closed for holidays. Japan’s Nikkei 225 Index jumped by 1.9 percent, while Australia’s S&P/ASX 200 Index slid by 0.7 percent.
The major European markets have also turned mixed after seeing early strength. While the U.K.’s FTSE 100 Index is up by 0.2 percent, the German DAX Index is down by 0.8 percent and the French CAC 40 Index is down by 1.0 percent.
In the bond market, treasuries have moved sharply higher amid concerns about escalating tensions in the Middle East. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 8.4 basis points at 3.718 percent.
Business News
U.S. Stocks Move Sharply Lower On Rising Middle East Tension, Dockworkers Strike
2024-10-01 15:00:35
