The major U.S. stock indices ended Wednesday just above the flatline, as escalating tensions in the Middle East tempered gains.
The S&P 500 added 0.01% to close at 5,709.54, while the Nasdaq Composite rose 0.08% to 17,925.12. The Dow Jones Industrial Average gained 39.55 points, or 0.09%, ending the session at 42,196.52.
Among stocks, Nike shares fell 6.8% after the company withdrew its full-year guidance ahead of a leadership transition. Tesla shares dropped 3.5% following the release of its delivery numbers.
However, the technology sector saw support from a 1.6% increase in Nvidia's stock.
Energy stocks also outperformed, with the Energy Select Sector SPDR Fund (XLE) rising by 1%, marking its fourth consecutive positive session.
The day’s modest gains came after Tuesday’s downturn, which was triggered by Iran’s ballistic missile attacks on Israel. The geopolitical tensions dampened investor sentiment, with further uncertainty looming as Israel initiated ground operations in Lebanon, raising the stakes with Iran-backed Hezbollah militants.
West Texas Intermediate (WTI) crude oil prices climbed further on Wednesday, following Tuesday's surge amid concerns over potential supply disruptions in the Middle East.
Meanwhile, U.S. economic data provided a positive note, as ADP's report showed stronger-than-expected private payroll growth in September. Investors are now looking ahead to Friday’s key nonfarm payroll report, which could significantly influence market direction and the Federal Reserve’s next move as it considers its ongoing rate-cutting cycle.
On the bond markets, 10-year and 2-year yields were at 3.783% and 3.637%, respectively.