Stocks fell Tuesday to start both October and the fourth-quarter lower as geopolitical tensions spiked in the Middle East, dampening market optimism. The Dow Jones Industrial Average dropped over 170 points, while the S&P 500 Index and Nasdaq Composite lost 0.9% and 1.5%, respectively.

Here's how the market settled on Tuesday:

S&P 500 Index (SPY  ): -0.93% or -53.73 points to 5,708.75

Dow Jones Industrial Average (DIA  ): -0.41% or -173.18 points to 42,156.97

Nasdaq Composite Index (QQQ  ): -1.53% or -278.81 points to 17,910.36

Moving Markets:

U.S. crude oil futures jumped higher on Tuesday as Iran launched a ballistic missile attack on Israel in retaliation for the recent killing of Hezbollah leader Hassan Nasrallah in Lebanon. Energy stocks APA Corp (APA  ), Halliburton (HAL  ) and Occidental Petroleum (OXY  ) climbed higher alongside the United States Oil Fund (USO  ).

Defense stocks including Northrop Grumman (NOC  ), Lockheed Martin (LMT  ), RTX Corp (RTX  ) and General Dynamics (GD  ) also rose higher, while the iShares U.S. Aerospace & Defense ETF (ITA  ) advanced over 1%.

In Economic News:

Job Openings rose by a more-than-expected 329,000 month-over-month in August, offering another sign of strength for the labor market after two straight months of decreases. The Labor Department's Job Openings and Labor Turnover Survey (JOLTS) showed new positions totaled 8 million for the month, down 1.3 million compared to the previous year, with the job openings rate being little changed at 4.8%.

Position increases were seen notably in construction (+138,000) and government (+78,000), while services declined (-93,000).

In the News:

General Motors (GM  ) reported better-than-expected third-quarter sales on Tuesday, falling 2.2% year-over-year to 659,601 vehicles sold. The company's sales saw a roughly 60% annual increase in electric vehicle sales during the quarter, about 32,100 units sold; EV made up about 5% of its total third quarter sales.

PepsiCo (PEP  ) announced Tuesday its purchasing Mexican American food company Siete Foods for $1.2 billion, marking its first food acquisition in about five years. Siete's portfolio includes tortilla chips, taco shells, salsas and seasonings, and is offered at retailers like Target (TGT  ), Kroger (KR  ) and CVS (CVS  ). The deal is expected to close in the first half of 2025, depending on regulatory approval.

"We look forward to expanding our multicultural portfolio with these incredible products and even more consumers discovering and enjoying Siete," Pepsi CEO Ramon Laguarta said in a statement.

Charles Schwab (SCHW  ) announced Tuesday that CEO Walt Bettinger will retire from his position at the end of the year, with President Rick Wurster set to take his place. Bettinger has held the top jon at the brokerage firm since 2008.

"Rick Wurster and I have worked together on a daily basis for more than eight years. I have complete confidence in his leadership, and I am thrilled that the Schwab Board of Directors has selected him as my successor," Bettinger said in a statement.

For Wednesday:

Market participants will turn their attention towards September's jobs report from ADP on Wednesday, offering another snapshot for the labor market ahead of the Labor Department's "official" report due out on Friday.