U.S. crude rose to hit $86 per barrel, with higher energy costs lifting Treasury 10-year yields to the highest since January 2025.
- The S&P 500 ended Monday 0.3% lower, while the Nasdaq 100 rose 0.1% and the Dow Jones Industrial Average dropped 0.7%.
- U.S. Central Command verified to MS NOW on Sunday that American forces launched strikes targeting a pair of rocket launchers located on Iran’s Larak Island.
- Nvidia Corp. announced a $3.5 billion investment in MediaTek Inc.
The S&P 500 and Dow dropped on Monday as geopolitical flare-ups over the weekend between the U.S. and Iran soured investor sentiment and pushed oil prices higher, while gains in Nvidia supported the Nasdaq 100.
The S&P 500 ended Monday 0.3% lower, while the Nasdaq 100 rose 0.1% and the Dow Jones Industrial Average dropped 0.7%. The Russell 2000, which tracks stocks with small market capitalizations, fell 0.5%.
Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) fell 0.3%, and Invesco QQQ Trust (QQQ) ended Monday 0.1% higher, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) was down 0.7%.
Meanwhile, the VanEck Semiconductor ETF (SMH) rose nearly 0.6%, and the iShares Semiconductor ETF (SOXX) rose 0.5%, with Nvidia (NVDA) leading gains. The broader Vanguard Information Technology ETF (VGT) rose 0.3%.
Retail sentiment on Stocktwits for QQQ, SPY, and DIA was ‘bullish’ with ‘high’ message volumes.
US Market Drivers
| Index | Move | Close |
| Dow Jones Industrial Average | -0.7% | 53,185.90 |
| S&P 500 | -0.3% | 7,686.14 |
| Nasdaq 100 | 0.1% | 29,456.97 |
Geopolitical tensions flared between Washington and Tehran as American military assets struck targets within the Strait of Hormuz, prompting the Islamic Republic to retaliate with offensive maneuvers directed at United Arab Emirates and Jordanian territories, marking the first such escalation in weeks.
“With traders tracking geopolitical volatility as well as potential seasonal volatility, it will be interesting to see which market impulse from last week might carry over to this week,” Chris Larkin at E*Trade from Morgan Stanley told Bloomberg. “Unexpectedly strong labor-market data might be taken as bad news by the market, since it could reinforce expectations for a rate hike.”
Energy markets reacted sharply to the renewed conflict, sending oil prices higher. Domestic crude (WTI) climbed 2.83% to finish at $85.76 a barrel, while global benchmark Brent crude settled 2.71% higher at $90.49. The surge in energy costs weighed on equity markets as 10-year Treasury yields trended upward alongside crude prices.
Despite Monday’s slip, US indices ended August higher, with the Dow gaining for the fifth consecutive month. Large-cap technology stocks drove most of the gains this month, with Nvidia up about 10% and Microsoft up more than 9%. Micron Technology advanced more than 16%.
A surge in long-duration Treasury yields on account of a bloated U.S. fiscal debt prompted the U.S. Treasury to announce plans to repurchase debt that helped cool yields a little; however, they still remain at elevated levels as investors continue to judge inflationary pressures and the Federal Reserve’s possible decision at the upcoming September rate decision meeting.
Key Trending Stocks
Nvidia (NVDA): The company announced a $3.5 billion investment in MediaTek through convertible bonds and expanded its partnership with the chip designer.
Meta Platforms (META): Bernstein estimated that Meta may already rival Google Search in ad revenue on a like-for-like basis.
Aon (AON): CEO Greg Case said on Monday that the company's $17 billion acquisition of USI was “maybe the greatest” value-creation opportunity he’s seen in his career of over 20 years.
Strategy (MSTR): The company announced on Monday that it had resumed buying Bitcoin (BTC) after a 10-week pause.
Tesla (TSLA): The EV maker added its pedal-less Cybercabs to its official Texas robotaxi roster on Monday, three days before an invite-only launch event in Austin.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
