US stocks end lower ahead of jobs data, Middle East focus
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The news: US stocks finished lower ahead of Friday's monthly US payrolls report and as investors kept a watchful eye on the growing conflict in the Middle East.
The numbers: Among the main indices: the Dow Jones fell 0.44%, the S&P 500 lost 0.17%, while the Nasdaq slipped 0.04%. US services sector activity jumped to a 1.5-year high in September amid strong growth in new orders, with non-manufacturing purchasing managers (PMI) index accelerating to 54.9 last month, from 51.5 in August.
The context: Investors remained nervous amid tensions in the Middle East, with oil prices rising after comments from US President Joe Biden fuelled speculation about potential Israeli strikes on Iran’s oil infrastructure.
Investors were also cautious ahead of the jobs report later on Friday that is considered key for the outlook for US interest rates. The Cboe Volatility index, Wall Street's fear gauge, rose to 20.49, its highest closing level since 6 September.
The benchmark indices briefly turned positive after the Institute for Supply Management survey showed US service sector activity jumped to a one-and-a-half-year high in September.
Energy shares rose along with a surge in oil prices as concerns mount over a widening regional conflict in the Middle East that could pose a threat to global crude flows. The S&P 500 energy index rose 1.6%.
Morgan Stanley economists said a prolonged stoppage due to a workers' strike on the East and Gulf coasts could raise consumer prices, with food prices likely to react first. Constellation Brands fell 4.7% after the beer maker maintained its sales and profit forecast for fiscal year 2025.
Results from some of the big US banks are expected to unofficially kick off third-quarter S&P 500 earnings at the end of next week.
The source: Reuters
