### Nasdaq Leads Decline as Economic Data and Geopolitical Tensions Shake Markets

U.S. stocks fell sharply on Tuesday as investors digested a mix of economic indicators and reacted to geopolitical turbulence. Reports that Iran may be planning a missile strike against Israel caused bond yields to drop and crude oil prices to spike.

The Dow Jones Industrial Average slid approximately 0.5%, while the S&P 500 dipped about 1%. The Nasdaq Composite experienced the steepest decline, falling around 1.7% in early trading.

New jobs and manufacturing data set a cautious tone as the market entered a new quarter. Investors are looking for hints on the Federal Reserve's future actions after Chair Jerome Powell suggested that rate cuts might not come swiftly. Surprisingly, job openings increased in August, with 8.04 million positions available, up from 7.71 million in July. This development indicates that while the labor market is cooling, it is not contracting as quickly as some had feared.

In the manufacturing sector, U.S. activity held steady in September. According to the Institute for Supply Management (ISM), the manufacturing PMI remained unchanged at 47.2. Although stable, this figure still signals a contraction since any PMI below 50 suggests a decrease in manufacturing activity.

Investors are bracing for Friday's September jobs report, which is expected to provide further insights into the state of the U.S. economy. The focus is on confirming whether the economy is merely cooling down rather than deteriorating severely.

Compounding market jitters, a strike by dockworkers on the East and Gulf coasts has commenced. This large-scale stoppage threatens to disrupt half of the U.S.’s ocean shipping, potentially costing the economy billions of dollars daily, escalating inflation, endangering jobs, and potentially impacting the political landscape.