US Stocks Fall as Iran War Uncertainty Weighs on Markets

U.S. stocks fell on Monday as soft economic data and uncertainty over the Iran war weighed on markets, causing investors to scale back bets on an imminent Federal Reserve interest rate move.

The Dow Jones Industrial Average dropped 0.51%, the S&P 500 declined by 0.52%, and the Nasdaq Composite was down 0.31% as investors waited for quarterly reports from large retailers such as Home Depot and Walmart to give insight into the health of the U.S. consumer.

The dollar slipped to a two-month low against the euro, with the greenback's index falling 0.06% to 99.6, while the euro gained 0.09% to $1.1579, its highest level since June 17.

Treasury yields rose as concerns over the U.S. fiscal trajectory and heavy AI-related corporate debt issuance pushed yields up, with the 30-year bond yield gaining 4.43 basis points to 5.3103%, the highest since 2007.