Wall Street posts slight gains amid cautious week over Middle East tensions

Boosted by a positive jobs report, the major indices managed to overcome pressures from Middle East-related news throughout the week.

The three main Wall Street indices moved decisively higher in the week’s final session. Driven by strong employment data, the averages managed to withstand the pressures brought on by Middle East-related news during the week.

The benchmark Dow Jones index, composed of 30 corporate giants, gained 0.81% to 42,352.75 points, while the S&P 500, which tracks 500 stocks, rose 0.90% to 5,751.07 points. The tech-heavy Nasdaq Composite climbed 1.22% to 18,137.85 points.

In the morning, employment data showed signs of strength in the U.S. economy. Non-farm payrolls increased by 254,000 jobs in September, surpassing expectations. The unemployment rate dropped from 4.2% to 4.1%.

Although the employment data reduced the likelihood of the Federal Reserve (Fed) making another significant rate cut this year, it brought much-needed optimism during a week marked by geopolitical tensions in the Middle East.

Most sectors posted gains, led by financials (up 1.64%), followed by consumer discretionary (up 1.62%). Within the Dow Jones, the best performers were JPMorgan (up 3.55%) and financial services company American Express (up 3.02%).

Despite the pressures faced earlier in the week, today’s gains helped Wall Street end the week in positive territory. The Dow Jones recorded a 0.09% gain, the S&P 500 rose 0.22%, and the Nasdaq edged up 0.10%.