Tech Gains Amid Middle East Tensions; Labor Data Eyed

The S&P 500 remained steady with technology shares gaining, countering investor nerves over Middle East tensions and upcoming U.S. labor data. Nvidia's rise contrasted Nike's decline, while labor market data showed stronger-than-expected growth. Market eyes are on the upcoming non-farm payrolls report and third-quarter earnings season kickoff.

The S&P 500 ended virtually unchanged on Wednesday, as gains in technology shares offset investor concerns over Middle East tensions and forthcoming U.S. labor data.

Boosted by Nvidia's rise, the S&P 500 technology index climbed despite Nike's decline after the company withdrew its annual revenue forecast. Investors remained vigilant about Middle East developments after Iran's attack on Israel, with U.S. President Joe Biden urging Israel to respond proportionally.

Wednesday's data indicated U.S. private payrolls grew more than expected in September, showing the labor market's resilience. Market attention now turns to September's non-farm payrolls report due on Friday. 'We're near all-time highs,' said Michael O'Rourke of JonesTrading. 'Investors await positive commentary from companies bolstered by a dovish Fed.'

Preliminary data showed the S&P 500 gained 0.68 points (0.01%) to 5,709.43, the Nasdaq Composite added 13.90 points (0.08%) to 17,924.26, and the Dow rose 38.50 points (0.09%) to 42,195.47.

September ended strong following the Fed's 50-basis-point rate cut to support the jobs market. Odds of a further rate reduction at November's meeting rose to 65.7%, up from 42.6% a week ago, per CME Group's FedWatch Tool.

Big banks like JPMorgan Chase will start the S&P 500 third-quarter earnings season on Oct. 11. Meanwhile, a 45,000-worker strike at U.S. East and Gulf Coast ports continued into its second day, costing the economy roughly $5 billion daily, according to JPMorgan analysts. Tesla shares fell on lower-than-expected third-quarter deliveries, while Humana's shares dropped after forecasting decreased enrollments in its Medicare Advantage plans for 2025.