Wall Street Wavers Amid Middle East Tensions and Labor Market Optimism

Wall Street opened slightly lower due to Middle East tensions and a domestic port strike. Despite gains in oil and defense stocks, investor sentiment remained cautious. The ADP reported 143,000 new private jobs in September, cooling fears of a labor market downturn. Market focus shifts to upcoming Fed comments and non-farm payroll data.

Wall Street was poised for a slightly lower open on Wednesday, impacted by geopolitical tensions in the Middle East and a labor strike in domestic ports. Investor sentiment remained on edge despite a positive labor market report that showed the addition of 143,000 private jobs in September.

The S&P 500 and Nasdaq saw significant drops in nearly a month, led by geopolitical concerns after Iran retaliated against Israeli attacks in Lebanon. Despite the turmoil, oil prices surged by over 3% as traders anticipated potential supply disruptions. Consequently, defense and oil stocks gained in premarket trading.

Meanwhile, the ADP National Employment report offered some relief by exceeding job addition estimates. This added to the speculation of a possible quarter-percentage-point rate reduction at the Fed's November meeting. However, the markets remained cautious, awaiting further comments from Fed policymakers and Friday's non-farm payroll data.

(With inputs from agencies.)