The Dow Jones and Nasdaq 100 have diverged this September. The tech-heavy Nasdaq 100 is nearing its all-time high, while the Dow remains 5.3% below its highest level this year. This article explores the top stock market news to watch this week.

Dow Jones and Nasdaq 100 to React to US-Iran Crisis

A key catalyst for the Dow Jones, Nasdaq 100, and S&P 500 indices will be the new developments on the ongoing US-Iran war. Iran submitted a list of seven demands last week, including ending of the blockade and the release of its funds. 

The demands came on the same week that the two sides held talks through mediators during the United Nations General Assembly. In a statement on Saturday, Trump said that he had rejected Iran’s proposals. He still hopes that the two sides will reach an agreement before or after the elections.

Odds of a deal happening explain why crude oil prices retreated a bit last week, which also helped boost stocks. This week, the stock market may react to any signs of escalation in the region.

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US Nonfarm Payrolls Data

The Dow Jones and Nasdaq 100 will react to important US macro data this week. The most important release comes on Friday, when the Bureau of Labor Statistics (BLS) publishes its nonfarm payrolls report. Economists expect the economy to have added over 50k jobs in September, a sign that it remains resilient.

A strong jobs report will raise the odds of another interest rate hike. More macro data to watch this week are the upcoming consumer confidence report on Tuesday, the Personal Consumption Expenditures (PCE), and the final reading of the Q2 GDP data. Historically, these numbers tend to move the stock market.

Micron Fourth Quarter Earnings

Micron, a top technology company, will also be in the spotlight this week as it publishes its earnings, which could have a broader impact on the stock market. The report will offer fresh insight into the health of the artificial intelligence industry.

Estimates are that its revenue continued soaring, reaching over $51 billion in the fourth quarter and its gross margin hitting 85%. Historically, earnings by large companies like Micron, Nvidia, and AMD tend to have an impact on the stock market. 

In addition to Micron, other companies like Carnival Corporation, CarMax, Nike, and Accenture will publish their earnings reports. 

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