Stocks were weathering a new round of attacks in the Middle East early Friday, attempting to claw back some of Thursday’s declines.
Israel targeted Hezbollah leaders in heavy airstrikes in Beirut. That pushed oil prices up, but traders didn’t rush to buy haven assets or unload stocks. Separately, dock workers agreed to end their strike, removing the worry that a protracted shutdown of U.S. ports would disrupt economic activity.
Futures for the Dow Jones Industrial Average were down 42 points, or 0.1%. Futures for the S&P 500 rose less than 0.1%, while contracts tied to the technology-heavy Nasdaq were up 0.1%. All three indexes finished Thursday lower.
The jump in energy prices was the biggest impact on markets, particularly after President Joe Biden suggested that Israel may target oil facilities in Iran. West Texas Intermediate rose 0.8% to just under $75 a barrel.
The September non-farm payrolls report released has the potential to move markets Friday morning. Traders will look at it to gauge how much and how quickly the Federal Reserve will cut interest rates the rest of the year.
“In the context of a worsening global geopolitical outlook, investors will be seeking reassurance from economic stability at home,” said Derren Nathan, an analyst at Hargreaves Lansdown. “Any unexpected signs of a weakening labor market could trigger a further dash for safe havens.”
Bond yields were higher early Friday. The yield on the 10-year Treasury was at 3.847%, up from about 3.81% yesterday. The two-year note yield was at 3.708%, compared with 3.6%.…Read more by Renae Dyer, Dow Jones Newswires, Brian Swint, Joseph Hoppe, Dow Jones Newswires