US benchmark equity indexes struggled as they approached the close on Tuesday, significantly influenced by a sharp rise in oil prices after Iran launched a ballistic missile attack on Israel. The Nasdaq Composite index dropped by 1.5%, settling at 17,920.8, while the S&P 500 fell by 0.7% to 5,723.0.
The Dow Jones Industrial Average also experienced a decline, losing 0.2% to reach 42,254.8. In market analysis, the technology sector was notably the hardest hit, experiencing the steepest decline, while energy and utilities sectors emerged as the leading gainers during this turbulent trading session. This escalation in tensions was sparked by Iran's military action, which was a direct response to the recent killing of Hezbollah chief Hassan Nasrallah and an Iranian commander in Lebanon, highlighting the ongoing geopolitical instability in the region.
Amid these developments, the price of West Texas Intermediate crude oil surged 2.9%, reaching $70.17 per barrel, reflecting heightened concerns over supply disruptions in the wake of escalating conflict. On the domestic front, the US manufacturing sector continues to face challenges, remaining in contraction territory throughout September due to softening demand and decreasing employment levels.
This is substantiated by recent data released by the Institute for Supply Management in conjunction with S&P Global. Additionally, the US 10-year Treasury yield experienced a modest drop of 6.1 basis points, falling to 3.74%, while the two-year rate saw a decrease of 3.6 basis points, settling at 3.62%.
The financial community is keenly awaiting quarterly financial results from several companies, with Nike, Lamb Weston, and Cal-Maine Foods scheduled to release their latest earnings reports after the market's closing bell, which could further influence market dynamics..