[New York Stock Exchange] US-Iran Clashes Resume... Indexes Close Lower on Rising Oil Prices

Brent Crude Surpasses $90
10-Year Treasury Yield Tops 4.75%

Tensions are rising again in the Strait of Hormuz as the United States and Iran have exchanged attacks for the first time in about a month. As a result, international oil prices surged and the yield on 10-year U.S. Treasury notes broke through 4.75%. On August 31, 2026 (local time), all three major U.S. stock indices on the New York Stock Exchange ended lower.

At the New York Stock Exchange (NYSE), the Dow Jones Industrial Average (Dow Jones) closed at 53,185.90, down 374.09 points (0.70%) from the previous trading day. The S&P 500 index, focused on large-cap stocks, fell by 25.62 points (0.33%) to close at 7,686.14, while the tech-heavy Nasdaq Composite dropped 31.53 points (0.12%) to end at 26,370.88.

Inside the New York Stock Exchange. New York (USA) – Special correspondent Yoonju Hwang

On this day, investor sentiment weakened as military tensions between the U.S. and Iran escalated once again in the Strait of Hormuz. The U.S. Central Command announced that it had attacked two rocket launch sites on Larak Island in Iran’s southern Strait of Hormuz the previous day. This marks the first time since the end of July that the U.S. has struck a target inside Iran. In response, Iran retaliated by launching missiles at a U.S. military base in Jordan.

As a result, international oil prices surged across the board. On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for October delivery settled at $85.76 per barrel, up 2.83% from the previous session. On the ICE Futures Exchange, Brent crude for November delivery rose 2.71% to finish at $90.49 per barrel.

Tom Heinlin, an investment strategist at U.S. Bank Asset Management, noted that although current oil prices are somewhat high, they are not at levels that would significantly contract the economy. However, he warned that should international oil prices surpass $100 per barrel, this could have a much clearer impact on consumption and corporate activity.

 

The sharp rise in oil prices fueled inflation concerns, causing U.S. Treasury yields to spike as well. The yield on 10-year U.S. Treasury notes climbed to around 4.76% during trading, marking the highest level since January last year.

On the 31st (local time), the yield on the 10-year U.S. Treasury note surpassed 4.75% for the first time since January last year, reaching a record high. Investing.com

CNBC reported that worries about further rate hikes have intensified as oil prices rise, especially after Federal Reserve (Fed) Chair Kevin Warsh signaled a strong alertness to inflation and kept the possibility of additional tightening open during the Jackson Hole Symposium on August 28.

According to Bloomberg, the interest rate futures market is currently pricing in a greater likelihood of the Fed raising its benchmark rate in September than holding steady. As a result, markets are focusing on U.S. employment data to be released this week. Bloomberg reported that the August nonfarm payroll report, scheduled to be released on September 4, is expected to show that the U.S. labor market remained generally stable.

Chris Larkin, investment strategist at Morgan Stanley E*Trade, analyzed, "Stronger-than-expected labor market data could be perceived negatively by the market, as it could reinforce expectations for further rate hikes."

However, the market is placing more weight on the Consumer Price Index (CPI) scheduled for release on September 11 than on the employment report. This is because Chair Warsh has evaluated that the U.S. economy is virtually at full employment, so the Fed’s policy focus is now on price stability.

Andrew Tyler, strategist at JPMorgan Chase, said that this week’s employment report will be "an important indicator," but projected that the September CPI will be the more significant data point. He stated that he is taking a "tactically cautious" stance on U.S. equities in the coming weeks.

By sector, some artificial intelligence (AI) and semiconductor stocks finished higher, including Nvidia (up 1.48%), Micron Technology (up 2.77%), SK hynix ADR Boost (up 2.20%), and Intel (up 0.04%).

Amazon fell 2.50% on news that the U.S. Federal Trade Commission (FTC) and 22 state governments have filed a lawsuit, alleging that the company charged advertisers excessive fees over several years.

PG&E and Edison International plunged 20.0% and 23.0% respectively, due to uncertainty surrounding California's wildfire response legislation. Intercontinental Exchange (ICE) and the Chicago Board Options Exchange (Cboe) also showed weakness amid concerns over increased competition as a result of the potential expansion of trading in digital asset derivatives.

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