US-Iran Conflict Weighs on Wall Street as Jobs Market Takes Center Stage
The stock market on Wall Street remained relatively flat as investors digested the latest updates on the US-Iran conflict and the jobs market. The S&P 500 index rose by a mere 0.1% in morning trading, while the Dow Jones Industrial Average gained 265 points or 0.5%. However, technology stocks were a major drag on the market, with Microsoft falling 0.6% and Broadcom slipping 0.8%. Oil prices held steady despite the escalating tensions between the US and Iran.
The conflict in the Middle East has had a significant impact on energy markets, leading to higher costs for oil and gasoline. The Strait of Hormuz, through which 20% of the world's oil is shipped, was shut down after the US attack on an Iranian site. As a result, Brent crude prices fell by 0.5% to $94.71 per barrel.
Investors are also closely watching the jobs market, with the government set to release its monthly employment report for August on Friday. The report is expected to provide insight into the state of the labor market and whether it will continue to support the economy. The Federal Reserve has been trying to balance its dual mandate of supporting employment and taming inflation.
The bond market has been signaling that investors expect interest rates to rise, with yields on 10-year Treasuries holding steady at 4.79% and yields on 2-year Treasuries rising to 4.39%. Investors are betting on a 66% chance of the Fed raising rates at its upcoming meeting in September.