Traders work on the New York Stock Exchange trading floor during morning trading on May 17, 2024.
Michael M. Santiago | Michael M. SantiagoGetty Images
Equity futures fell in overnight trading following a poor start to the new trading month and final quarter of 2024.
Futures and Dow Jones Industrial Average dropped slightly by 80 points, while S&P 500 Index Futures and Nasdaq 100 Futures fell by about 0.1% and 0.2% respectively.
In the after-hours action, Nike Shares fell about 7% after the sneaker giant withdrew its full-year guidance ahead of replacing its chief executive. Elliott Hill will take over the helm of Nike on October 14.
Major stock indexes are experiencing losses as rising tensions in the Middle East dampen risk appetite and investor enthusiasm for the new trading period. this Dow Jones Industrial Average fell more than 173 points, while S&P 500 Index and Nasdaq Index fell 0.93% and 1.53% respectively.
Oil prices rose sharply, CBOE Volatility Index (.VIX) Oil prices soar as Iran fires ballistic missiles at Israel. The attack comes as Israel begins a ground operation in Lebanon and escalates tensions with the Iran-backed militant group Hezbollah.
“We started out worried about how long the port strike would impact markets and underlying economic growth, but those concerns quickly shifted to the Middle East,” said Ryan Detrick, chief market strategist at LPL Financial. “The biggest concern now is whether this conflict will evolve. It could lead to a larger-scale war in the entire region, which could certainly be a major surprise in October.”
Technology stocks were the worst-performing sector on Tuesday. The S&P 500 information technology sector fell 2.7%, recording its worst trading day in nearly a month, leading to… apple, NVIDIA, Microsoft and Tesla. U.S. Treasury yields fell as investors sought safer assets.
Ahead of Friday's September jobs report keynote, Wall Street will take a closer look at private employment through the ADP employment survey on Wednesday. As the rate-cutting cycle begins, Friday's non-farm payrolls report may play an important role in market direction and the Fed's next move in interest rates.