Wall St posts minor gains amid Middle East tensions

The major indexes wrapped up Wednesday just above the flatline, as rising tensions in the Middle East put pressure on the markets.

The S&P 500 edged up 0.01 per cent to finish at 5,709.54, while the Nasdaq Composite rose 0.08 per cent to close at 17,925.12. The Dow Jones Industrial Average added 39.55 points, or 0.09 per cent, ending at 42,196.52.

Turning to US sectors, Energy was the best performer, closing 1.12 per cent higher. The worst performing sector was Consumer Discretionary which closed 0.78 per cent lower.

September's ADP payrolls reported 143K jobs added, exceeding expectations of 125K, with August's figures also revised upward. The report indicated a broad recovery in job creation after a five-month slowdown, with only the information sector shedding jobs.

This comes after a downturn earlier in the week, triggered by Iran's ballistic missile strikes on Israel, which dampened investor sentiment as the new trading month and quarter began. With Israel launching a ground operation in Lebanon and escalating tensions with Hezbollah, investors are bracing for continued geopolitical uncertainty.

West Texas Intermediate crude oil prices rose on Wednesday, continuing Tuesday's gains amid the ongoing Middle East conflict. However, stocks rebounded from earlier losses as oil prices pulled back from their peaks. The CBOE Volatility Index (VIX), often referred to as Wall Street's fear gauge, also retreated after a spike on Tuesday.

In company news, Nike's shares dropped 6.8 per cent after the company pulled its full-year guidance in light of an upcoming leadership change. Tesla saw a decline of 3.5 per cent following its latest delivery figures, although the technology sector found some support with Nvidia rising 1.6 per cent.

In other developments, a report released on September 30 by mining giant BHP projected a rise in global copper consumption by an additional 1 million tonnes annually until 2035. This significant demand increase is largely driven by the adoption of copper-intensive technologies, effectively doubling the growth rate of the past 15 years.

Meanwhile, OpenAI announced on Wednesday that it has secured $6.6 billion in new funding, boosting its valuation to $157 billion. The company stated that this funding will enhance its leadership in AI research, expand computing capacity, and facilitate the development of tools aimed at solving complex challenges.

Futures

The SPI futures are pointing to a flat start, up 0.04 per cent.

Currency

One Australian dollar at 7.50am was buying 68.85 US cents.

Commodities

Gold fell 0.77 per cent. Silver added 0.56 per cent. Copper gained 1.31 per cent. Oil added 0.39 per cent.

Figures around the globe

European markets closed mixed. London’s FTSE added 0.17 per cent, Frankfurt lost 0.25 per cent, and Paris added 0.05 per cent.

Turning to Asian markets, Tokyo’s Nikkei lost 2.18 per cent, while Hong Kong’s Hang Seng jumped 6.20 per cent and China’s Shanghai Composite gained 8.06 per cent.

Yesterday, the Australian share market closed 0.13 per cent lower at 8198.

Ex-dividends
ARB Corporation (ASX:ARB) is paying 35 cents fully franked
Myer Holdings Ltd (ASX:MYR) is paying 0.5 cents fully franked
New Hope Corporation (ASX:NHC) is paying 22 cents fully franked
Qualitas Re Income (ASX:QRI) is paying 1.1304 cents unfranked

Dividends payable
Adrad Holdings Ltd (ASX:AHL)
Bega Cheese Ltd (ASX:BGA)
BHP Group Ltd (ASX:BHP)
Centrepoint Alliance Ltd (ASX:CAF)
CTI Logistics Ltd (ASX:CLX)
Enero Group Ltd (ASX:EGG)
Fleetwood Ltd (ASX:FWD)
Humm Group Ltd (ASX:HUM)
Integral Diagnostics Ltd (ASX:IDX)
Lifestyle Communities Ltd (ASX:LIC)
Pacific Current Group Ltd (ASX:PAC)
Propel Funeral Partners Ltd (ASX:PFP)
Qualitas Ltd (ASX:QAL)
Seek Ltd (ASX:SEK)
Sports Entertainment Group Ltd (ASX:SEG)
Supply Network Ltd (ASX:SNL)
Teaminvest Private Group Ltd (ASX:TIP)
Woodside Energy Group Ltd (ASX:WDS)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap, Marketech.

Disclaimer

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