US-Iran Tensions Weigh Heavy on Markets as US Indices Decline

The US-Iran flare-up weighed heavily on global markets, causing a decline in major indices. The Dow Jones Industrial Average dropped 0.7% to close at 53,185.90, while the S&P 500 lost 0.3% to finish at 7,686.14. In contrast, the Nasdaq 100 rose 0.1% to settle at 29,456.97.

The spike in oil prices had a significant impact on equity markets, with domestic crude increasing by 2.83% to $85.76 per barrel and global benchmark Brent crude rising by 2.71% to $90.49. The surge in energy costs weighed heavily on the US Treasury 10-year yields, which trended upward alongside crude prices.

Despite Monday's decline, major indices still ended August higher, with the Dow posting its fifth consecutive month of gains. Large-cap technology stocks drove most of these gains, led by Nvidia, which rose about 10% and Microsoft, up more than 9%. Micron Technology also advanced more than 16%.

Nvidia made headlines after announcing a $3.5 billion investment in MediaTek through convertible bonds and expanding its partnership with the chip designer. Meta Platforms was also mentioned, as Bernstein estimated that it may already rival Google Search in ad revenue on a like-for-like basis. Other key trending stocks included Aon, Strategy (MSTR), Tesla, and Micron Technology.