Zinger Key Points
- Major stock indices saw little movement as traders exercised caution amid Middle East tensions and recent market rallies.
- U.S. non-farm payrolls added 254,000 jobs in September, beating forecasts, complicating future Federal Reserve rate cut decisions.
- Get New Picks of the Market's Top Stocks
It was a relatively flat week for major stock indices as traders opted for caution following the rallies of recent weeks and amid intensifying conflict in the Middle East.
On Tuesday, Iran launched a barrage of missiles at Israel, retaliating after Israeli forces announced the killing of Hezbollah leader Hassan Nasrallah during airstrikes in Beirut.
Israel mulling a counterattack against Iran caused oil prices and energy stocks to surge, driven by concerns over supply disruptions in a critical oil-producing region. A basket of U.S. oil and gas stocks, the Energy Select Sector SPDR Fund XLE, recorded its strongest weekly performance in two years.
Major Chinese tech giants, as tracked by the iShares MSCI China ETF MCHI, saw another week of strong gains driven by heightened investor enthusiasm for domestic stimulus policies.
The U.S. labor market continues to defy gravity. In September, 254,000 new non-farm payroll jobs were added, significantly beating forecasts.
The unemployment rate dropped more than expected, and wages grew faster than anticipated. As a result, market participants and economists are rethinking the need for further aggressive interest rate cuts by the Federal Reserve.
US-Israel Talks Propel Oil Prices
Oil prices rallied when President Joe Biden said the U.S. is in discussions with Israel about potential strikes on Iranian oil facilities. The geopolitical tensions and potential military action have raised concerns about the stability of energy markets, contributing to the surge in oil prices.
Zuckerberg’s AR Vision
Mark Zuckerberg suggests Meta Platforms Inc.‘s META upcoming AR device, Orion, could become the next major tech shift after smartphones. He sees augmented reality as a transformative force, with Orion possibly leading the charge in a new era of immersive, wearable technology, revolutionizing how people interact with the digital world.
Cramer’s China focus
Jim Cramer highlights that investor “hot money” is shifting from Nvidia Corp. NVDA and Apple Inc. AAPL toward Chinese stocks. He advises those interested in the Chinese market to focus on Alibaba Group Holding Limited BABA, emphasizing it as a key player amid the growing investment interest in China's tech sector.
Ford EV growth
Ford Motor Co.‘s F U.S. electric vehicle sales gained momentum in the third quarter despite a slowdown in its top-selling Mustang Mach-E SUV. The Michigan-based automaker experienced strong performance from its F-150 Lightning and E-Transit models, bolstering its efforts to expand its presence in the U.S. electric vehicle market.
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