Nasdaq and S&P 500: Geopolitics, jobs and key earnings

U.S. stock benchmarks traded near record levels as investors weighed a new Middle East escalation and a busy U.S. economic calendar. The Nasdaq-100 traded around 26,400 points, below its year-to-date high of 27,217, while the S&P 500 was near 7,711, off a peak of 7,820.

U.S. forces struck Iranian missile launchers near the Strait of Hormuz. Officials said Tehran may retaliate against U.S. targets in the region. Reports indicated U.S. forces were operating with constrained ammunition stocks.

Oil prices rose on the escalation. Brent approached $90 a barrel and West Texas Intermediate was near $85. Gasoline remained above $4 per gallon and diesel reached its highest levels in years. Personal consumption expenditures, the Federal Reserve’s preferred inflation gauge, showed both headline and core readings above 3% in May.

At the Jackson Hole symposium, former Federal Reserve governor Kevin Warsh said the Fed “will use all the tools available to lower the country’s inflation.” Market pricing reflected a higher probability of further policy tightening if inflation stays elevated.

The economic calendar offers several data points that could move markets. The Bureau of Labor Statistics will release the JOLTS job openings report on Tuesday. ADP will publish its private-sector payrolls estimate ahead of the official nonfarm payrolls report on Friday. Economists expect the August nonfarm payrolls report to show an increase of about 84,000 jobs after a revised loss of 23,000 in July. Manufacturing and services purchasing managers’ indexes for August are due this week and will provide additional detail on activity and hiring.

Corporate earnings add another layer of potential market drivers. Broadcom is scheduled to report results on Tuesday. Oracle is also due to report this week. Other companies reporting results include Dell, Palo Alto Networks, Medtronic, Credo Technology Group, Snowflake, HPE, Ciena and Zscaler.

Traders will monitor incoming economic readings and corporate results alongside developments in the Middle East to set near-term positioning.