Market Reactions: Key Stock Movements Amid Geopolitical Tensions and Employment Data

U.S. stock markets experienced mixed movements as geopolitical tensions in the Middle East escalated and U.S. private payrolls increased unexpectedly. Major indices like the S&P 500 and Nasdaq dropped, while the Dow saw a slight increase. Market sentiment is influenced by Middle East conflicts and economic data, including strong job growth revealed by the ADP survey.

The benchmark S&P 500 and Nasdaq hovered near two-week lows on Wednesday as investors accounted for rising geopolitical tensions in the Middle East. A survey, however, mitigated concerns about a rapid cooldown in the U.S. labor market.

Market sentiment was cautious after the U.S. and Israel pledged retaliation following Iran's attack on Israel. This led to the S&P 500 and Nasdaq seeing their largest single-day drops in almost a month. The Dow Jones Industrial Average gained 28.72 points, or 0.07%, to 42,175.03; the S&P 500 fell by 13.30 points, or 0.24%, to 5,694.09; and the Nasdaq Composite declined by 88 points, or 0.49%, to 17,825.69.

Investor sentiment was further influenced by strong U.S. private payrolls data, showing an increase of 143,000 jobs in September. Meanwhile, oil prices surged over 3% due to potential supply disruptions in the Middle East. Defense stocks stayed steady, with the S&P 500 aerospace and defense index reaching a record high.

(With inputs from agencies.)