[New York Stocks] International Oil Prices Top $100 per Barrel Again... Nasdaq Down 2.2%

On the 23rd (local time), the three major indices of the New York Stock Exchange in the United States closed lower due to a surge in international oil prices amid rising tensions in the Middle East, as well as the investment burdens of major tech companies in artificial intelligence (AI).

That day, the Dow Jones Industrial Average ended down 506.93 points (0.97%) at 51,711.65. The S&P 500 Index closed at 7,408.30, down 90.66 points (1.21%) from the previous session, while the tech-heavy Nasdaq Composite finished at 25,137.69, a decrease of 553.21 points (2.15%).

Investor sentiment in the stock market was dampened as Brent crude, the benchmark for international oil prices, surpassed $100 per barrel for the first time in two months. September Brent crude futures ended trading at $100.69 per barrel, up 7.04% from the previous session. September West Texas Intermediate (WTI) futures settled at $92.19 per barrel, up 6.17%. For Brent, this marks the highest level since May 22, while for WTI, it is the highest since June 4.

Concerns over disruptions in the Strait of Hormuz, a major shipping route for global crude oil, combined with an attack on a Saudi Arabian oil tanker in the Red Sea, have heightened supply fears.

Previously, the Iran-backed Houthi rebels in Yemen declared a blockade in the Red Sea targeting Saudi Arabia. The previous day, two Saudi oil tankers were hit by airstrikes, and the Houthis claimed responsibility. The United States has carried out airstrikes on Iran for 12 consecutive days, while U.S. President Donald Trump hinted at the possibility of a large-scale attack against Iran.

The increase in oil prices fueled inflation worries, causing U.S. bond yields to rise. The yield on the 10-year U.S. Treasury note rose 4 basis points (1bp=0.01% point) from the previous session to 4.70%. This is the first time the 10-year Treasury yield has surpassed 4.7% in a year and six months, since January of last year.

As a result, expectations for another Federal Reserve (Fed) benchmark rate hike have resurfaced. Weekly initial unemployment claims in the U.S., announced that day, fell to the lowest level since 1969, once again confirming the strength of the job market. Consequently, the outlook that the Fed will continue to prioritize inflation stability has gained support.

This content was produced with the assistance of AI translation services.