1 day ago
Wall Street Slides as West Asia Tensions Lift Oil Prices
US stock markets had a difficult day on Monday.
The Dow Jones lost 370 points, and the S&P 500 and Nasdaq also fell.
Investors were worried because fighting involving the United States and Iran became more intense.
These concerns pushed oil prices higher.
Higher oil prices can make it more expensive for businesses and consumers to buy things.
Bond yields also increased, which added to market worries.
Investors are now watching for jobs and inflation reports from the United States.
These reports may help show whether the Federal Reserve will raise interest rates.
Even with Monday's losses, all three major indexes finished August with gains.
The Dow Jones fell 370 points on Monday, while the S&P 500 and Nasdaq also closed lower.
Despite the decline, the Dow gained 1% in August, compared with 2.6% for the S&P 500 and 3.9% for the Nasdaq.
Renewed US-Iran tensions pushed Brent crude above $90 a barrel and West Texas Intermediate toward $85.
US Treasury yields rose, with the 10-year yield reaching 4.75% and the 30-year yield 5.26%.
Markets are awaiting US jobs and inflation data that could influence Federal Reserve interest-rate decisions.
- Who
- US stock-market investors, the United States, Iran, and the Federal Reserve were central to the report.
- What
- The Dow Jones fell 370 points as renewed US-Iran tensions lifted oil prices, bond yields, and interest-rate concerns.
- Where
- On Wall Street, amid developments involving Iran, Jordan, the United Arab Emirates, and wider West Asia.
- When
- Monday, at the end of August; upcoming US jobs data is due Friday and CPI data next week.
- Why
- Market sentiment weakened because of renewed regional tensions, rising crude prices, higher Treasury yields, and fears of a Federal Reserve rate hike.
Market Concerns
Market Resilience
Daily trading versus monthly performance
Market Concerns
The daily selloff reflected investor concerns about regional tensions, oil prices, bond yields, and possible interest-rate increases.
Market Resilience
The major indexes still ended August with gains, including a fifth consecutive monthly advance for the Dow Jones.
Interest-rate outlook
Market Concerns
A stronger jobs report or persistent inflation could reinforce expectations that the Federal Reserve will raise rates, potentially pressuring stocks.
Market Resilience
The article does not identify a confirmed rate increase; upcoming jobs and inflation data will determine the policy outlook.
Key facts
- Dow Jones Monday move
- Fell 370 points.
- August performance
- Dow Jones gained 1%, S&P 500 gained 2.6%, and Nasdaq gained 3.9%.
- Brent crude
- Rose above $90 a barrel.
- West Texas Intermediate
- Rose toward $85 a barrel.
- US 10-year yield
- Reached 4.75%, its highest level since January 2025.
- US 30-year yield
- Rose to 5.26%.
- Rate-hike probability
- The reported probability of a 25-basis-point increase rose to 66%, from 36% before Kevin Warsh's Jackson Hole remarks.
Quotes
Kevin Warsh
Federal Reserve chair who spoke at the Jackson Hole symposium
“We have got work to do”
CNBC TV 18
Sources
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