Stocks Steady Amid Geopolitical Tensions and Employment Data

The S&P 500 and Nasdaq saw slight gains despite geopolitical tensions in the Middle East, bolstered by positive U.S. private payroll data. Energy stocks reached a month's high, while Tesla and Nike pulled the Consumer Discretionary sector down. Traders are cautious but optimistic following recent Federal Reserve actions.

The S&P 500 and the Nasdaq edged higher on Wednesday, close to two-week lows, as investors monitored the escalating geopolitical tensions in the Middle East alongside promising U.S. labor market data.

Amid rising global tensions, with Israel and the U.S. vowing retaliation against Iran's recent attack, markets showed caution. The S&P 500 and Nasdaq had their steepest one-day drops in almost a month on Tuesday.

At midday, the Dow Jones Industrial Average rose by 37.78 points (0.09%) to 42,194.75. The S&P 500 increased by 7.82 points (0.14%) to 5,716.57, and the Nasdaq Composite grew by 57.33 points (0.32%) to 17,967.69. Energy stocks soared to a one-month peak as oil prices surged over 3%, suggesting potential supply disruptions from the Middle East.

'Investors are certainly cautious amid the increasing global tensions. There's limited spillover at this point, but it certainly remains something that investors are closely watching,' said Timothy Chubb, Chief Investment Officer at Girard.

Further boosting market sentiment, data indicated stronger-than-expected growth in U.S. private payrolls for September, hinting that labor market conditions were not weakening.

Tesla and Nike stocks negatively impacted the Consumer Discretionary sector, while semiconductor stocks like Nvidia saw gains. The Federal Reserve's recent actions and potential future rate cuts continue to influence market expectations.

(With inputs from agencies.)