Wall Street dips as investors focus on US-Iran war
SPY•Wall Street fell as uncertainty about the Middle East lifted oil prices and Treasury yields, though the S&P 500 and Nasdaq pared losses after a report that US and Iranian negotiators were exploring a deal to reopen the Strait of Hormuz. The S&P 500 lost 0.09%, the Nasdaq 0.20% and the Dow 0.31%.
1. Stocks pare losses
The S&P 500 and Nasdaq came off session lows after a report that US and Iranian negotiators in New York were exploring a path out of the war that would include Washington lifting its economic blockade of Iran. Brent crude rose about 4% to $107 a barrel after a Houthi missile attack on Saudi Arabia revived fears of supply disruptions.
2. Rates and company moves
Treasury yields rose, with the 30-year yield reaching its highest level since 2004. New York Fed President John Williams said it was reasonable to think the central bank might need to raise rates again before year-end; traders priced in nearly a 70% chance of a hike next month. Oracle fell 4.1% after a report said it sent a force majeure notice to a New Mexico data center, while project developer Blue Owl fell 5%. Meta gained 3.4%, and MGM Resorts slumped 11% after People Inc withdrew its purchase proposal.
3. Index performance
The S&P 500 ended down 0.09% at 7,698.90, the Nasdaq fell 0.20% to 26,883.15 and the Dow declined 0.31% to 51,350.11. Seven of the S&P 500’s 11 sector indexes fell. The index traded just under 19 times expected earnings this week, its lowest valuation since 2023, according to LSEG data.
