Dow Tumbles 419 Points as US-Iran Tensions Escalate

The Dow Jones Industrial Average closed at 52,766.88 on Tuesday, September 1, down 419.02 points or 0.79% from Monday's close.

The decline was led by Alphabet, Nvidia, and Caterpillar, which fell 2.21%, 2.03%, and 1.74% respectively, while Merck, Johnson & Johnson, and Chevron rose 1.84%, 1.63%, and 1.49% as crude oil prices surged.

The drop in the Dow was attributed to a fresh escalation of US-Iran hostilities, with two oil tankers being struck by projectiles in the Strait of Hormuz, causing Brent crude to climb towards $93 per barrel.

Rising Treasury yields also added to the pressure on the index, with the 10-year yield pushing towards 4.8%, its highest level since January 2025, and the 30-year yield climbing back towards 5.3%.