US Stocks Slide as Iran-US Tensions Escalate, Oil Prices Soar
On Monday, US stocks closed lower due to renewed military strikes between the United States and Iran, pushing crude oil prices above $90 per barrel. This surge in oil prices reignited inflation fears and strengthened expectations of a Federal Reserve interest rate hike in September.
The Dow Jones Industrial Average fell 374.09 points (0.70%) to 53,185.90, while the S&P 500 declined 25.62 points (0.33%) to 7,686.14 and the Nasdaq Composite slipped 31.54 points (0.12%) to 26,370.89.
Energy was the only sector in positive territory, gaining 2.11% as oil prices surged on geopolitical tensions. Chevron Corp. (CVX) surged 2.14% to lead Dow gainers, benefiting from the sharp rise in oil prices. SLB (SLB) rose 2.20%, Exxon Mobil Corp. (XOM) advanced 2.74%, and Halliburton Co. (HAL) climbed over 2%.
However, communication services was the worst-performing sector, declining 1.63%, weighed down by Alphabet Inc. (GOOGL), which fell 2.18%. The broader technology sector faced headwinds from rising bond yields, with Amazon.com Inc. (AMZN) falling 2.44% after a lawsuit over alleged advertising auction manipulation.