Wall Street Tries to Weather US-Iran Escalation

The Wall Street market remained flat on September 2 as tensions between the US and Iran escalated. Despite this, investors are still betting on a 66% chance that the Federal Reserve will raise interest rates at its upcoming meeting in September.

Technology stocks were the biggest force holding the market back, with Microsoft falling 0.6% and Broadcom slipping 0.8%. Energy stocks mostly fell as oil prices held relatively steady despite the intensification of hostilities between the US and Iran.

The jobs market has been a key focus for Wall Street and the Federal Reserve, which is trying to balance its task of supporting employment and taming inflation. The Fed's benchmark interest rate would help cool inflation by making borrowing costs higher and slowing the economy, but this could also hurt the employment market at a time when it is seemingly already weakening.