[New York Stock Exchange] Trump Refuses to Extend Armistice MOU... All Major Indices Close Lower

U.S.-Iran Tensions Flare Anew
Iran Signals “Shift to Aggressive Stance”
30-Year Treasury Yield at Highest Level in 19 Years
International Oil Prices Rise Over 2%

U.S. President Donald Trump announced that he has no intention to extend the Memorandum of Understanding (MOU) on a ceasefire with Iran after its expiration. As a result, on August 17 (local time), all three major indexes on the New York Stock Exchange closed lower. As Iran also hinted at the possibility of expanding military operations, tensions in the Strait of Hormuz rose again, pushing up international oil prices.

At the New York Stock Exchange (NYSE), the Dow Jones Industrial Average ended the day at 53,459.78, down 272.63 points (0.51%) from the previous trading day. The S&P 500 index, focused on large cap stocks, fell by 40.70 points (0.52%) to 7,745.06, while the tech-heavy Nasdaq index finished at 26,644.91, down 84.25 points (0.32%).

View of the New York Stock Exchange. New York, USA - Photo by Yoonju Hwang

The market that day was influenced by developments regarding the extension of the ceasefire MOU between the U.S. and Iran. President Trump, in a Fox News interview and during a Q&A with White House reporters, asserted he had no intention to extend the MOU with Iran and insisted, "Iran must wave the white flag of surrender."

The MOU had already become meaningless after repeated armed skirmishes between the two sides, and on this day, the 60-day negotiation deadline expired as well. According to Fox News, when asked about Oman's role in the negotiations with Iran, President Trump warned with explicit language that "if Oman interferes, I will bomb them relentlessly."

Iran also took a hardline stance.

A senior Iranian official told foreign media that if diplomatic efforts with the U.S. fail, Iran may shift to a more aggressive posture. Iranian news agency Tasnim also dismissed any possibility of talks to extend the MOU.

As a result, international oil prices closed higher. On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for September delivery rose 2.55% from the previous session to settle at USD 84.50 per barrel. On the ICE Futures Exchange, Brent crude for October delivery gained 2.65% to close at USD 90.87 per barrel.

However, Jason Stevens, founder of Everton Wells, analyzed, "We are closely monitoring the negotiations in real time. Especially with the midterm elections approaching, the likelihood of reaching an agreement is increasing, so for now, I believe that oil prices are more likely to fall than to rise." He added, "The current administration is under significant pressure to focus on this issue and deliver tangible results."

The yield on long-term U.S. Treasury bonds also reached its highest level in 19 years. The yield on the 30-year Treasury hit 5.31% during trading, marking the highest since June 2007.

The rise in long-term Treasury yields is attributed to the growth of U.S. national debt, large-scale bond issuance, and concerns about inflation. Bloomberg reported that in the bond market, increased fiscal burdens and inflation risks are prompting investors to demand higher yields on long-term Treasuries, resulting in falling bond prices and rising yields.

In particular, the increase in long-term corporate bond issuance due to companies borrowing more amid the artificial intelligence (AI) boom, along with weakening demand from traditional buyers of long-term Treasuries in the U.S., are also driving long-term yields higher.

By stock, Micron rose 4.13%, Intel 0.97%, TSMC 1.08%, SK hynix ADR 3.04%, and Cisco Systems 1.09%. In contrast, Microsoft (MS) declined by 3.04%, Broadcom by 0.14%, Alphabet by 0.55%, Meta by 3.54%, and Nvidia by 0.07%.

Meanwhile, the market is also focusing on the minutes of the Federal Open Market Committee (FOMC) meeting in July, which are scheduled for release by the Federal Reserve (Fed) on the 19th. Inflation remains well above the Fed's target. The U.S. Consumer Price Index (CPI) for July rose 3.4% year-on-year. The July Personal Consumption Expenditures (PCE) index, which the Fed uses as its official inflation gauge, will be announced on the 26th.

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