US Stock Market Closes Lower Amid Escalating Iran Tensions
The US stock market closed slightly lower on August 31, but some sectors showed resilience.
Oil prices surged due to escalating tensions between the US and Iran, pushing international oil prices up. WTI crude rose to $85.76, while Brent crude reached $90.49. The energy sector led gains with a 2.10% surge, while communication services led losses, falling 1.63%. Inflation expectations and US Treasury yield forecasts increased, with the 10-year yield hovering around 4.75%, as the VIX climbed to 14.92.
The AI theme remained active, despite the overall market trend. NVIDIA (NVDA) rebounded 1.48% on August 31 after a 4.57% drop on August 28 due to profit-taking following earnings. The stock price stabilized above its 60-day moving average and formed a 'consolidation resistance band' between 217-219.
Micron Technology (MU) surged 2.77% on heavy volume, erasing previous losses and closing near its 60-day moving average. The energy sector showed signs of resilience with the price spike in oil prices.