NEW YORK (AP) — U.S. stock indexes slipped Tuesday and gave back some of their rallies from the day before, while oil prices got back to rising as uncertainty continues about how long the war with Iran will last. The S&P 500 fell 0.4% after yo-yoing through the day. The Dow Jones Industrial Average dipped 84 points, or 0.2%, while the Nasdaq composite sank 0.8%. Markets have been on a roller coaster since President Donald Trump raised hopes that the war with Iran could end soon when he said Monday that ...

Core Viewpoint - Elevated financial market volatility due to geopolitical tensions, particularly Israeli and U.S. strikes on Iran, is prompting investors to seek safer dividend stocks with no exposure to the Middle East [1] Group 1: Market Conditions - Financial market volatility has increased following military actions in the Middle East, influencing investor behavior [1] Group 2: Investment Strategies - Investors are likely to increase allocations to safer dividend stocks as a response to current market conditions [1]

Market Overview - Financial markets experienced significant volatility overnight, but stabilized as Wall Street opened for trading on Monday, with U.S. stocks rising modestly following gains in Europe and sharp drops in Asia [1] - The S&P 500 increased by 0.5%, aiming to end a three-day losing streak, while the Dow Jones Industrial Average rose by 317 points, or 0.6%, and the Nasdaq composite was up 0.6% [1] Sector Performance - Companies involved in computer storage led the market gains, building on positive momentum from last week due to several profit reports exceeding analysts' expectations [1] - Airlines and cruise-ship operators also performed well, benefiting from a significant decrease in oil prices [1] Precious Metals - Precious metals, particularly gold and silver, were at the center of market activity, with gold's price experiencing a dramatic drop from its recent high [1] - Gold briefly fell below $4,500 per ounce, a decrease of over $1,000 from its peak just a week prior, before recovering to $4,742.80, down 0.1% from Friday [1] - Silver's price exhibited extreme volatility, swinging from a 9% loss overnight to a 0.3% gain [1] - The surge in gold and silver prices earlier was driven by investor demand for safer assets amid various concerns, including potential changes in Federal Reserve independence, perceived overvaluation in the U.S. stock market, tariff threats, and high global government debt levels [1]

Economic Overview - The U.S. economy is showing mixed signals with strong GDP growth and record stock market highs contrasted by weak job reports and rising inflation [1] - President Trump's tariffs are causing concerns regarding their impact on consumer prices, GDP growth, and the labor market [1] GDP Growth and Economic Projections - Tariffs could lead to a GDP growth decline of approximately 0.9 percentage points by 2025, with long-term effects potentially reducing annual real GDP by about 0.6% [3] - A long-run GDP drop of around 6% is projected, along with wage reductions of roughly 5% [3] Inflation and Consumer Prices - Tariffs are expected to raise inflation by about 0.4 percentage points in both 2025 and 2026, reducing household and business purchasing power [4] - Tariffs are described as functioning like taxes, leading to higher business costs that are typically passed on to consumers [4] Labor Market Trends - There is a sustained slowdown in job creation, with only 22,000 jobs added in August 2025 and a decline of 12,000 manufacturing jobs [5] - Unemployment rose to 4.3%, the highest level since 2021, indicating ongoing job losses in sectors such as manufacturing, mining, and construction [5][6] Financial Market Reactions - Stock markets reacted sharply to the announcement of broad tariffs in April 2025, with significant declines in both the S&P 500 and Nasdaq [7] Revenue vs. Economic Costs - While tariffs are generating significant federal revenues, economic models suggest that the losses in GDP and wages outweigh these gains [8]