04:59 PM EDT, 10/01/2024 (MT Newswires) -- US benchmark equity indexes fell Tuesday while oil prices soared amid rising geopolitical tensions in the Middle East.

The S&P 500 dropped 0.9% to 5,708.8, and the Dow Jones Industrial Average declined 0.4% to 42,157, both retreating from Monday's record high closings. The Nasdaq Composite slid 1.5% to 17,910.4. Among sectors, technology saw the steepest decline, while energy led the gainers.

Iran carried out a missile attack on Israel in retaliation over the latter's recent killing of Hezbollah chief Hassan Nasrallah and an Iranian commander in Lebanon, media outlets reported. Israel will give a "significant response" to Iran's attack, CNN reported, citing an Israeli official.

West Texas Intermediate crude oil jumped 3.7% to $70.67 a barrel.

In economic news, the US manufacturing sector remained in contraction territory in September amid soft demand and declining employment, according to data from the Institute for Supply Management and S&P Global ( SPGI ) .

"Combined with the (Federal Reserve) embarking on its rate-cutting cycle, there are some glimmers of optimism for a sector that has struggled under the weight of higher interest rates," TD Economics said in a report.

The ISM and S&P Global's ( SPGI ) reports on the US services sector performance for last month are scheduled to be released Thursday.

US job openings climbed to 8.04 million as of the last day of August from July's 7.71 million print, according to the Bureau of Labor Statistics' Job Openings and Labor Turnover survey. The consensus was for a 7.67 million level in a survey compiled by Bloomberg.

"The labor market is rebalancing to a state that supports stability without putting upward pressure on inflation," Jefferies said in a note to clients.

The International Longshoremen's Association union began a strike along the US East and Gulf Coast ports early Tuesday after rejecting the United States Maritime Alliance's final proposal on a new contract, prompting a shuttering of ports from Maine to Texas.

The US 10-year yield fell 7.2 basis points to 3.73%, while the two-year rate decreased 4.5 basis points to 3.61%.

In company news, Apple's ( AAPL ) suppliers may have to import parts from China or elsewhere after a fire caused extensive damage at Tata Group's iPhone component plant in India over the weekend, Reuters reported. Apple ( AAPL ) shares fell 2.9%, the second-steepest decliner on the Dow.

Paychex ( PAYX ) was the top performer on the S&P 500 and the second-best on the Nasdaq, up 4.9%, after the company logged higher-than-expected fiscal first-quarter results and reiterated its top- and bottom-line guidance.

McCormick ( MKC ) raised its full-year earnings outlook as the spices and seasonings producer posted better-than-expected fiscal third-quarter results. The company's shares rose 2.2%.

Gold increased 0.8% to $2,681.30 per troy ounce, while silver rose 0.5% to $31.63 per ounce.