California Becomes Key Battleground in Fight for U.S. House Control 
Global Equities Decline Amid Middle East Tensions; Oil Prices Rally 
Wells Fargo Sees Near-Term Upside for Small Caps Amid Political and Economic Uncertainty 
Global Equities Slip, Dollar Rises as Fed Chair Signals Smaller Rate Cuts; Oil Futures Flat Amid Middle East Concerns 
HSBC: Global Equity Fund Inflows Surge on China Stimulus, Rate Cuts 
Goldman Sachs Increases 2025 Gold Price Forecast to $2,900 per Ounce 
S&P 500 Falls Amid Middle East Tensions and Fed Caution 
Fed's Powell Signals More Rate Cuts, Emphasizes Data-Driven Approach 
Israel Escalates Conflict with Ground Raids into Lebanon 
Oil Prices Decline 17% in Q3 Amid Global Demand Concerns and Middle East Tensions 
BofA Analysts Flag Market Risks from China, Fed Cuts, and Tax Loss Harvesting 
Global Markets Waver as Fed Signals Caution on Rate Cuts; Oil Ends Flat Amid Middle East Tensions 
China’s Factory Slowdown and Services Slump Spark Calls for Stronger Economic Stimulus 
S&P Global Downgrades Israel’s Credit Rating Amid Regional Tensions 
Harris Favored to Win Presidency, But Trump Could Gain if Economy Weakens 
U.S. stocks ended lower on Tuesday as concerns over the conflict between Israel and Hezbollah, Iran-backed militants in Lebanon, raised market uncertainties. Reports of rising tensions in the Middle East prompted investor caution, impacting several sectors.
Energy and Defense Stocks Gain
Energy stocks rose alongside oil prices, which settled 2.4% higher. Exxon Mobil (NYSE: XOM) gained 2.3%, boosted by the rise in oil prices. Defense companies also saw gains, with Northrop Grumman (NYSE: NOC) climbing 3% and Lockheed Martin (NYSE: LMT) increasing 3.6%. The S&P 500 aerospace and defense index reached a record high, and utilities stocks were up by 0.8%.
Airline Stocks and Market Volatility
In contrast, airline stocks dropped, reflecting the risk-averse market mood. Delta Air Lines (NYSE: DAL) fell 1.6%. While major indexes managed to recover some ground before closing, investors remained cautious amid global uncertainties.
“If we do see further escalation, I could see continued market weakness because we just don't know how far this is going to go," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.
Index Performance
- Dow Jones Industrial Average: Fell 173.18 points, or 0.41%.
- S&P 500: Lost 53.73 points, or 0.93%.
- Nasdaq Composite: Dropped 278.81 points, or 1.53%.
Economic Indicators and Upcoming Reports
The CBOE Volatility Index, Wall Street’s “fear gauge,” saw an uptick. Economic data released Tuesday showed U.S. job openings rebounded in August, while the Institute for Supply Management reported that manufacturing activity stood at 47.2 in September, slightly below expectations of 47.5.
Investors are closely watching upcoming economic reports, including U.S. jobless claims on Thursday and monthly payroll data on Friday. According to CME Group’s (NASDAQ: CME) FedWatch Tool, there are varying views on the potential for a Federal Reserve rate cut in the coming months.
Market Volume and Breadth
Trading volume on U.S. exchanges was higher than average, reaching 13.16 billion shares compared to the 11.98 billion average over the last 20 trading days. On the NYSE, declining issues outnumbered advancing ones by a 1.32-to-1 ratio, and on the Nasdaq, the ratio was 2.36-to-1 in favor of decliners. The S&P 500 recorded 51 new 52-week highs and two new lows, while the Nasdaq Composite saw 75 new highs and 137 new lows.
