As of press time,$Dow Jones Industrial Average (.DJI.US)$Decreased by 0.24%,$Nasdaq Composite Index (.IXIC.US)$Increased by 0.20%,$S&P 500 Index (.SPX.US)$Increased by 0.02%.

Due to the ongoing escalation of tensions in the Middle East weakening investor sentiment, the U.S. stock market had a poor start in October. After Iran launched a missile attack on Israel, the U.S. stocks closed lower on the first trading day of October (Tuesday, October 1st).

As Israel begins ground military operations in Lebanon, investors are preparing for further uncertainty.

The ongoing tension in the Middle East, with growing concerns about disruptions to crude oil supply, has also pushed up oil prices. Early Thursday morning, U.S. WTI crude oil futures rose by over 1.5%, bringing its gains for the week to 4.6% so far.

The market is also monitoring labor market data.

The U.S. Department of Labor reported on Thursday that initial jobless claims in the U.S. rose slightly last week, in line with limited layoffs.

Specific data shows that for the week ending September 28, the number of initial jobless claims in the U.S. increased by 6,000 to 225,000. Economists surveyed had a median forecast of 221,000.

According to Thursday's Department of Labor data, the number of continuing jobless claims in the U.S. remained basically unchanged at 1.83 million people. The four-week moving average for initial jobless claims fell to 224,250, the lowest since June 1.

The strike by port workers on the U.S. East Coast and Gulf Coast has entered its third day. Long lines of container ships are forming at these ports, causing disruptions in unloading and potentially leading to shortages of goods.

Economists state that due to companies speeding up the delivery of key commodities in recent months, the initial strike will not lead to an increase in consumer prices. However, economists at Morgan Stanley believe that a prolonged shutdown will eventually seep into prices, with food prices possibly being the first to react.

Although negotiations have not been arranged between the International Longshoremen's Association and employers, port owners have expressed willingness to engage in new negotiations under pressure from the White House.

The Retail Federation of the United States, along with 272 other industry associations, is urging the Biden administration to use its federal power to stop the strike, warning that the strike could have "devastating consequences" on the economy. However, the Biden administration has made it clear that they will not use federal power to stop the strike.

The market's focus this week is on the September non-farm payroll report on Friday morning.

Mary Ann Bartels, Chief Investment Strategist at Sanctuary Wealth, said: 'While the stock market is grappling with various concerns – including escalating Middle East tensions, the East Coast port strike, and presidential election uncertainty – liquidity is key, and now that the Fed has started cutting rates, it means the market can continue to rise.'

She said: 'Despite the volatility in the U.S. stock market in October, there is still plenty of fuel in this bull market.'

Richmond Fed President Barkin pointed out that after experiencing the highest interest rates in 20 years and easing supply chain issues, the slowing pace of price increases provided the Fed with the basis to lower rates, but inflation issues have not been fully resolved.

Barkin stated that the Fed's significant rate cut in September was an adjustment to the current economic situation, not a signal of panic about economic slowdown.

In addition, Barclinch believes that the current US labor market is performing steadily, but the trend is not optimistic. Since last year, the unemployment rate has risen, while the monthly hiring pace has slowed down. However, the phenomenon of layoffs is still relatively rare, as employers seem to be more cautious about layoffs after experiencing labor shortages during the epidemic.

Baljkin pointed out that the labor market is facing dual risks, as low interest rates may stimulate demand and increase recruitment, or negative trends may further exacerbate.

In the overseas markets, Japan's new Prime Minister Ishiba on Thursday made dovish comments, stating that Japan's economy is not yet ready for further interest rate hikes by the central bank, leading to a sharp fall in the yen and a large rise in the Japanese stock market.

The market was originally concerned that the Bank of Japan might shift to hawkish policies, driving the yen higher, thereby suppressing the performance of the export industry, but Ishiba's comments calmed investors' concerns.

Focus stocks

Philadelphia semiconductor sector components are generally up, as of press time, $NVIDIA (NVDA.US)$,$Advanced Micro Devices (AMD.US)$rose more than 4%.

Popular China concept stocks generally fell, as of the time of publication,$Bilibili (BILI.US)$Fall by more than 7%.$Baidu (BIDU.US)$,$NIO Inc (NIO.US)$falling more than 3%.

$NVIDIA (NVDA.US)$Up nearly 4%, CEO Huang Renxun stated that there is a 'crazy' demand for Blackwell's artificial intelligence chips.

$Advanced Micro Devices (AMD.US)$Up nearly 4%, Bank of America Securities maintains a buy rating on the company and keeps the target price at $180.

Editor/ping