US Stocks Plummet $700B Amid Iran Talks Stalemate, Rising Oil Prices
Nearly $700 billion was erased from the combined market value of S&P 500 companies on Monday, as Wall Street braced for rising oil prices and Treasury yields. The Dow and Nasdaq fell 0.7% and 0.9%, respectively.
The US-Iran settlement outlook worsened after President Donald Trump reportedly turned down Tehran's proposal to end hostilities and reopen the Strait of Hormuz, only to signal later that US negotiators could resume talks with Iranian officials this week.
Iran wants sanctions relief as well as firm commitments concerning the waterway and Iran's nuclear programme. However, Iranian officials have privately expressed doubts about reaching an agreement before the November US midterm elections, according to a Monday Bloomberg report.
Federal Reserve Governor Lisa Cook warned that the enormous investment behind the AI boom could keep adding to upward inflationary pressure. She believes AI-driven demand is already contributing to inflationary pressure and could continue doing so in the coming months.