US Stock Markets See Modest Gains Amid Economic Complications

The US stock markets saw modest gains last week, with the Nasdaq Composite, S&P 500, and Dow Jones Industrial Average rising by 0.52%, 0.42%, and 0.43% respectively.

Economic conditions remained complicated due to geopolitical tensions and rising energy costs, with oil prices climbing to $91.01 per barrel for WTI and $95.63 for Brent as U.S.-Iran hostilities intensified around the Strait of Hormuz.

The trade deficit widened sharply to $88.6 billion in July, while second-quarter productivity rose 1.4% and unit labor costs increased 1.2%. The ISM manufacturing PMI fell to 54.6 from 55.6 in July, while services activity improved to 55.4 but missed the street's expectations.

The labor market remained a main story, with July JOLTS job openings coming in at 7.2 million and ADP reporting only 38,000 private-sector jobs in August, missing expectations. However, weekly initial jobless claims rose slightly to 206,000, while continuing claims stayed contained at 1.779 million.

The nonfarm payrolls jumped 162,000 in August, far above the expected 53,000, and July and June payrolls were revised higher by a combined 55,000. The unemployment rate held at 4.1%, while wage growth remained moderate at 0.3% month over month and 3.1% year over year.