The Dow Jones Industrial Average (DJIA) experienced a sharp decline early Tuesday, influenced by a combination of disappointing industrial data from the US and renewed concerns about the escalating Israel-Hamas conflict. The ISM Manufacturing Purchasing Managers Index (PMI) for September did not show the hoped-for rebound, remaining stagnant. Recent Israeli military actions targeting Hamas in Lebanon have raised fears of retaliation from Iran, expanding the conflict in the Middle East.
The US ISM Manufacturing PMI for September stayed at 47.2 for the second month in a row, falling short of the anticipated increase to 47.5. Additionally, the ISM Manufacturing Prices Paid index dropped more than expected, sliding into contraction at 48.3, down from 54.0.
In other US data, JOLTS Job Openings for August climbed to 8.04 million, exceeding the revised figure of 7.7 million from the previous month. However, the increase in job openings does not seem to correlate with new hiring, as the ISM Manufacturing Employment Index for September fell to 43.9 from 46.0, missing the predicted rise to 47.0.
Investor focus has shifted towards the geopolitical tensions in the Middle East following reports that Iran has launched a missile barrage against Israel in retaliation for Israel's recent actions in Lebanon. The US has announced its intention to support Israel, leading investors to worry about a potential rapid escalation of the conflict.
