With armed clashes between the United States and Iran continuing, the New York stock market was mixed on the 2nd (local time). A bargain-hunting bid flowed in after stock prices fell for three straight days, but concerns that oil prices and inflation could rise again if the Middle East war drags on are weighing on investor sentiment.
As of 9:59 a.m., the Dow Jones Industrial Average on the New York Stock Exchange was up 268.16 points (0.51%) from the previous session at 53,035.04.
The S&P 500 was also up 10.99 points (0.14%) at 7,642.46. In contrast, the tech-heavy Nasdaq composite fell 8.63 points (0.03%) to 26,091.15.
After stock prices fell for a third straight day recently, investors trying to buy the dip entered the market, which had some effect.
Earlier, international oil prices spiked due to armed clashes between the United States and Iran, heightening concerns that inflation could rise again, and Government Bonds yields in the United States and other major countries also climbed. When rates rise, corporations' funding expense increases and the relative appeal of stocks diminishes, burdening the stock market.
However, with retaliatory attacks by the United States and Iran continuing, investors remain uneasy.
U.S. Central Command (CENTCOM) said the previous day that it began attacks targeting Iran's Islamic Revolutionary Guard Corps (IRGC). It said it struck air defense and radar facilities, maritime asset, mine-laying capabilities, and communications facilities. Axios reported that U.S. forces also attacked two Iranian government-owned oil tankers in the process.
Iran also moved to counterattack. The IRGC said it shot down a U.S. MQ-9 attack drone and struck a U.S. base in Jordan with ballistic missiles. It claimed it also attacked U.S. forces stationed in Erbil, the autonomous Kurdish region of Iraq.
With the war continuing, caution is growing over the possibility that inflation and interest rates could rise again.
Sam Stovall, chief investment strategist at CFRA Research, said, "Investors are very concerned about the global uptrend in bond yields," and "are reducing exposure to stocks on which they have booked significant profits."
By sector, communication services and health care rose, while utilities and real estate fell.
Among individual stocks, computer maker Dell climbed 6.17%. Better-than-expected results and an upgraded outlook for the 2027 fiscal year, reflecting growth in its artificial intelligence (AI) services business, served as a catalyst.
Audio entertainment company Sirius also rose 6.21%. Deutsche Bank raised its investment rating on the company to "buy" from "hold" and set a target price of $45.
By contrast, MongoDB plunged 12.72%. While results topped market expectations, growth in the cloud databases platform "Atlas" fell short of investor expectations. Atlas revenue rose about 29% from a year earlier.
European stocks were also lower.
The Euro Stoxx 50 was down 0.12% from the previous session at 6,361.65 in transaction. Germany's DAX and France's CAC 40 fell 0.46% and 0.13%, respectively. The U.K.'s FTSE 100 also slipped 0.27%.
International oil prices fell.
At the same time, West Texas Intermediate (WTI) for October 2026 delivery was down 0.65% from the previous session at $89.63 a barrel.