Wall Street closes lower as oil prices jump, indexes notch monthly gains

While a broad sell-off sent all three major U.S. stock indexes lower, they all posted monthly gains. The Nasdaq showed the largest percentage growth for August as the AI trade remained alive, despite recent weakness. The blue-chip Dow nabbed its fifth consecutive monthly advance.

"We heard from Warsh last week, and the odds now favor a rate hike in September," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. "Throw that into the mix of continued hostilities in the Middle East.

"And the week before Labor Day, there's not a lot of people who are out of the office, so weird things can happen," Tuz added. "There was no reason to come into work today thinking it’s a great day to buy stocks."

Iran's President Masoud Pezeshkian said Tehran is still seeking a negotiated solution to the war, after days of renewed airstrike exchanges and mounting hostilities following U.S. President Donald Trump's implementation of costly economic sanctions.