Stocks closer lower, oil soars following Iran missile attack

All three of the major indexes (^DJI,^GSPC, ^IXIC) closed lower on Tuesday, October 1. Growing Middle East tensions weighed on the markets and sent oil prices (CL=F, BZ=F) soaring.

Market Domination Overtime anchor Julie Hyman along with Yahoo Finance Markets and Data Editor Jared Blikre recap the action at the close.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

This post was written by Stephanie Mikulich.

Video transcript

That's the closing bell on Wall Street, and now it is market domination over time, sponsored by tasty trade.

We're joined by Jared to get you up to speed on the action from today's session.

Let's start with where the major averages ended the day here and we see them moving back down towards the lows.

As we close out the session, the Dow off about 100 and 73 points.

It did the best of the three major averages.

As we discussed earlier.

There are more sort of aerospace and defence giants in here.

The catalyst today, as we've been, is increased tensions and beyond between Israel and Iran, with Tehran firing a barrage of ballistic missiles towards Israel and this is after Israel's ground invasion of Lebanon.

And so all of this going on amidst the port strike as well, which began today equaling some pressure on the major averages.

The S and P 500 down about 9/10 of 1%.

The NASDAQ the worst of the three off one percent sort of classic risk off situation here, where tech stocks do the worst.

As we've been discussing small caps, also getting hit here down 1.5%.

And as we've been discussing, we saw investors kind of go to where they see as relatively safer areas going into US.

Treasury Yields down, Prices up Coming out of Bitcoin here, interestingly, down about 3% gold, though catching a bid and then the other big thing to watch today has been crude up up 3.2% on maybe some increased concerns about what's going to be happening to supply out of Iran.

Jared.

Yes, thank you, I was.

I'm actually writing about crude oil and potentially higher energy prices for tomorrow's morning brief, so make sure to catch that tomorrow.

I just want to review some of the action today.

Pretty interesting.

I would note that here's a VI We saw this spike up here.

These are all geopolitical concerns, but we do see a lot of Vic Spikes in October and November.

We call that time crash season now.

It doesn't always happen that way, and in fact, October tends to be a positive month, unlike September.

But when we do have spikes in the V, you've got to be careful in October because we can see we've seen a lot of market meltdowns in history, not saying that has to happen this month.

Not to get too far ahead of ourselves.

Just want to plot a 10 year T note yield.

That was down about six basis points today, just taking a look at the candlesticks chart.

We probed lower, and then we closed higher.

So I think that's a significant reversal, and we might just see higher interest rates in the days and weeks to come.

That, combined with a higher dollar, portends a headwind to equities prices.

Too early to tell.

But two days there we're just seeing the very beginning potentially of a trend.

And so a higher dollar could mean flight to safety in the US.

And that just doesn't do well for risk.

Looking at the sectors here, energy was up, but not as much as Tech was down tech just taking it on the chin down 2.5%.

That's energy.

That is up over 2% on the back of those higher crude prices utilities, communication services industrials, those round out the winners today and I'd also add that only tech was, uh, the underperformer.

So let's take a like a look inside.

We have software here.

A lot of red, not at lass.

And that seems to be the standout.

But Pan W down over 3%.

Snowflake, down 4% mongo DB, uh, 4.7.

I'm going to leave you with the chip stocks.

NVIDIA down 3.6% guys.