Wall Street today: US equities slip on escalating Middle East tensions

US equities slipped on Tuesday on reports of escalating tensions in the Middle East.

The United States is actively supporting preparations to defend Israel on indications that Iran is preparing to launch a ballistic missile attack against Israel, said a White House official.

The Dow Jones Industrial Average fell 133.26 points, or 0.31 per cent, to 42,196.89, the S&P 500 lost 55.91 points, or 0.97 per cent, to 5,706.57 and the Nasdaq Composite lost 312.63 points, or 1.72 per cent, to 17,876.54.

A Labor Department survey showed job openings rose in August.

An Institute for Supply Management (ISM) report showed manufacturing activity declined in September.

Shares of Nike edged down 0.3 per cent ahead of the company's quarterly earnings report due later in the day.

In a major development related to shipping industry, around 45,000 dockworkers at East and Gulf Coast ports started a strike on Tuesday after the International Longshoremen's Association and shipping companies failed to reach a deal on a new contract.

The dockworkers are asking for a labor contract that doesn’t allow automation to take their jobs, among other things.

The strike could impact the supply chains and drive up the inflation.

In the bond market, the yield on the 10-year Treasury eased to 3.71 per cent from 3.79 per cent late on Monday.

Bullion

Gold prices rose on Tuesday on safe-haven demand due to Middle East tensions and lower US bond yields.

Spot gold was up 0.6 per cent at $2,649.59 per ounce, as of 1057 GMT. US gold futures edged 0.4 per cent higher to $2,671.

Spot silver was up 0.7 per cent at $31.37 per ounce.

Crude oil

Oil prices slipped at the start of the fourth quarter as a bearish market outlook countered geopolitical risks in the Middle East.

Brent traded near $71 a barrel after ending Monday modestly higher.