US stocks fell deeper into the red on Tuesday as investors assessed a new set of economic data. Meanwhile, reports that Iran is preparing a possible missile attack on Israel have cut bond yields and raised crude oil prices (CL=F).
The Dow Jones Industrial Average (^DJI) fell about 0.5%, while the S&P 500 (^GSPC) fell about 1% after both major indexes hit new record highs last quarter. The tech-heavy Nasdaq Composite (^IXIC) escalated losses in early trading, falling about 1.7%.
New jobs and manufacturing data kicked off the new quarter as investors looked for further clues about the future of the Federal Reserve’s easing cycle after Fed Chairman Jerome Powell hinted the central bank is in no rush to cut rates anytime soon .
The number of vacancies surprisingly increased in August, reinforcing the narrative that the labor market may be cooling, but it is not slowing down anytime soon. New data showed there were 8.04 million open jobs at the end of August, up from 7.71 million in July.
Meanwhile, US production remained stable in September. The Institute for Supply Management (ISM) said the manufacturing PMI was unchanged at 47.2 last month. Although the numbers remained stable, they were still weak, as a PMI below 50 indicates a contraction in the manufacturing sector.
Read more: What the Fed’s interest rate cut means for bank accounts, CDs, loans and credit cards
The data prepares investors for Friday’s September jobs report, the highlight of a week of closely watched economic data. Investors are looking for confirmation that the US economy is cooling, rather than crumbling.
Meanwhile, a strike by longshoremen began on the East Coast and Gulf Coast, halting the flow of half of America’s shipping. A disruption from the widespread shutdown could cost the economy billions of dollars a day, fuel inflation, jeopardize jobs and resonate in American politics.
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