Wall St declines as oil spikes after Trump rejects Iran peace proposal
SPY•U.S. stocks fell after President Donald Trump rejected an Iranian peace proposal, sending crude prices up 3% to around $107 a barrel and pushing Treasury yields higher. The Dow fell 0.74%, the S&P 500 lost 0.83% and the Nasdaq dropped 0.99%.
1. Indexes fall as oil jumps
Wall Street’s main indexes fell on Monday after Trump rejected an Iranian proposal to end the conflict. Crude prices rose 3% to around $107 a barrel, reviving inflation worries and weighing on Treasuries; longer-dated yields reached fresh multi-decade highs.
2. Nvidia buyback supports shares
Nvidia rose 2.1% after announcing a $150 billion share repurchase authorization, its biggest-ever increase in buybacks. The Dow fell 384.11 points to 51,446.37, the S&P 500 lost 64.36 points to 7,679.05, and the Nasdaq declined 268.66 points to 26,800.06.
3. Investors await economic data
Trump said he expected U.S. negotiators to continue talks with Iran this week. Investors were awaiting the August Personal Consumption Expenditures report on Wednesday and September nonfarm payrolls on Friday for clues on the Federal Reserve’s policy path. Tesla fell 3.2% after J.P. Morgan lowered its price target, citing weak third-quarter deliveries.
