Dow, S&P 500, Nasdaq Edge Up; Iran-Israel Impact on Oil; Tesla, Nike, and More

The gains may seem small but add on to this year’s relentless rally in stocks. The S&P 500 has hit record levels 43 times this year, the Dow 33, and the Nasdaq 27, according to Dow Jones Market Data. The indexes aren’t too far from making another set of record closes if they keep the momentum going.

Still, that momentum is questionable after Iran hit Israel with a barrage of missiles on Tuesday. The potential of a reaction from Israel led to the VIX—Wall Street’s fear gauge—spiking on Tuesday.

It was down to 18.98 today. Among the latest developments, President Joe Biden said he won’t support an Israeli attack on Iranian nuclear sites.

Port workers remain on strike, potentially reigniting inflation if an agreement isn’t reached soon enough. Retailers have pulled their orders forward, but some inventory could be stuck, meaning the longer the strike goes, the more likely prices could move higher.

Together, this injects uncertainty into the stock market and today’s moves are emblematic of investor caution.

In the bond world, prices fell and yields rose. The move of the 10-year yield to 3.783% was slight; it has been stuck around the 3.75% mark.

Currencies and oil had the strongest action among noteworthy assets. The U.S. Dollar Index hit a two-week high near 101.45. Front month Brent crude has increased for two straight sessions, with today’s move adding 34 cents per barrel.

Looking ahead, Thursday’s session brings a new batch of economic data, including labor market figures in the form of initial claims and September’s ISM Services report.

Friday’s employment report will be more important—but even then there will remain uncertainty as to the Fed’s ultimate decision Ian Lyngen from BMO says.