Stocks cautious on US-Iran escalation, bond yields hit multi-year highs
US stocks ended a three-day decline on Thursday, with the Dow rising 295 points, the S&P 500 gaining 0.46%, and the Nasdaq adding 0.45%. Tech giants NVIDIA, Tesla, Microsoft and Meta drove early gains as Treasury yields pulled back to 4.79%. Despite the rally, US futures later trended lower as oil prices climbed toward $95 amid ongoing clashes around Iran. Federal Reserve Governor Christopher Waller indicated he may support keeping interest rates steady in September if data shows inflation is cooling.
What changed
The Dow and Nasdaq rebounded as Treasury yields retreated from multi-year peaks, though futures later dipped due to Iranian tensions.
Live updates
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US Stocks Break Losing Streak as Treasury Yields Ease
US stocks ended a three-day decline on Thursday, with the Dow rising 295 points, the S&P 500 gaining 0.46%, and the Nasdaq adding 0.45%. Tech giants NVIDIA, Tesla, Microsoft and Meta drove early gains as Treasury yields pulled back to 4.79%. Despite the rally, US futures later trended lower as oil prices climbed toward $95 amid ongoing clashes around Iran. Federal Reserve Governor Christopher Waller indicated he may support keeping interest rates steady in September if data shows inflation is cooling.
Why it matters
Investors are weighing the growth of AI against the pressure of rising borrowing costs. High oil prices and Middle East tensions are fueling inflation fears, while the US 30-year fixed-rate mortgage has reached its highest level since July 2025.
What is confirmed
- The Dow rose 295 points, the S&P 500 gained 0.46%, and the Nasdaq increased 0.45%.
- The 10-year Treasury yield declined to 4.79%.
- Oil prices remained near $95.
- Fed Governor Christopher Waller stated he is inclined to argue for keeping interest rates steady at the September meeting if inflation pressures cool.
Still unconfirmed
- US futures are mostly lower due to ongoing clashes around Iran.
- The average US 30-year fixed-rate mortgage rose to its highest level since July 2025.
- Broadcom shares slumped during the early tech rally.
What to watch next
- Upcoming inflation data that may influence the Federal Reserve's September rate decision
- Further movements in oil prices tied to Middle East clashes
confidence 90%Sources used for this update (5)
- hdfcsky.com — Dow Rallies 295 Points, Nasdaq Adds 0.45% as Treasury Yields Ease
- apnews.com — US futures mostly lower and oil prices climb due to ongoing clashes around Iran
- hdfcsky.com — Wall Street Opens Higher as Tech Stocks Rally, Yields Cool from Multi-Year Peaks
- www.marketscreener.com — US fixed 30-year mortgage rate rises to highest since July 2025
- www.marketscreener.com — Fed's Waller open to leaving rates unchanged at September meeting if inflation cools
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AI strength offsets US-Iran friction as bond yields hit multi-decade highs
US stocks edged higher on Wednesday after three straight declines, with AI-linked shares helping the S&P 500 and Dow withstand renewed US-Iran tensions. This recovery follows a Tuesday sell-off where the Nasdaq fell 1.1%, the S&P 500 dropped 0.7%, and the Dow fell 0.6% due to inflation fears. Global bond yields in the US, UK, and Japan have reached multi-decade or multi-year highs as oil prices exceed US$90. Investors are now balancing AI growth against rising borrowing costs and expectations of a September Federal Reserve rate hike.
Why it matters
US airstrikes on Iranian rocket launchers triggered a surge in oil prices to five-week highs. This geopolitical instability revived energy-driven inflation risks, leading to a broad sell-off in government bonds. Higher yields increase borrowing costs for companies and consumers, creating downward pressure on equity valuations.
What is confirmed
- The Nasdaq fell 1.1%, the S&P 500 dropped 0.7%, and the Dow fell 0.6% on Tuesday.
- Oil prices have topped US$90 and reached five-week highs.
- Bond yields in the US, UK, and Japan have hit multi-decade or multi-year highs.
- US stock futures remained little changed following three consecutive days of losses on Wall Street.
Still unconfirmed
- Investors are increasing bets on a Federal Reserve rate hike in September.
- AI-linked shares are currently offsetting the negative impact of US-Iran friction on the S&P 500 and Dow.
What to watch next
- Friday's US jobs report
- Upcoming key corporate earnings reports
confidence 90%Sources used for this update (7)
- economictimes.indiatimes.com — Dow Jones| Nasdaq | S&P 500 | US Stock Market Today |Live Updates: Nasdaq falls over 1% as bond sell-off, rising oil fuel inflation fears
- www.cnbc.com — Global bond yields soar to multi-decade highs as Middle East turmoil reignites inflation fears
- www.dimsumdaily.hk — US stocks steady as futures edge higher after oil and bond yields rattle global markets
- economictimes.indiatimes.com — Dow Jones| Nasdaq | S&P 500 | US Stock Market Today |Live Updates: S&P 500, Dow gain as AI strength offsets US-Iran friction
- news.ssbcrack.com — Global Markets Decline as U.S. Airstrikes on Iran Drive Oil Prices Higher
- www.marketscreener.com — Rising Treasury yields could rattle US stocks as earnings season ends
- www.marketscreener.com — US Treasury Closing Levels
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Asian shares slide and oil prices surge after US strike on Iranian rocket launchers
Global markets are reacting to a US strike on Iranian rocket launchers, which triggered a surge in oil prices and a decline in Asian equities. While US stock futures show little change as traders conclude a winning month, Indian indices fell on August 31, with the Sensex dropping 307.24 points to 76,957.27. Investors remain cautious due to escalating US-Iran tensions and high bond yields, which are putting downward pressure on shares across Asia.
Why it matters
The intersection of geopolitical conflict and high yields creates a volatile environment for equity traders. Market participants are now balancing the risk of energy price shocks against broader macroeconomic data.
What is confirmed
- Oil prices rose following US strikes on Iranian rocket launchers.
- Asian shares experienced declines or mixed results following the escalation in Iran.
- The Sensex closed down 307.24 points at 76,957.27 on August 31.
Still unconfirmed
- US stock futures dipped according to Bloomberg.
- Indian equities are expected to react to Q1 FY27 GDP data and the September 4 US non-farm payrolls report.
What to watch next
- The US non-farm payrolls report on September 4
- Further military responses between the US and Iran
confidence 90%Sources used for this update (6)
- CNBC — Stock futures are little changed as traders get set to wrap up a winning month: Live updates
- Bloomberg.com — Oil Rises on Iran Tensions, US Stock Futures Dip: Markets Wrap
- Reuters — Shares skid in Asia as oil, yields stay high
- timesofindia.indiatimes.com — Stock Market Live Updates Today: Sensex falls 388 points, Nifty slips 154 points in early trade
- AP News — Asian shares are mixed and oil prices surge after US strike on Iranian rocket launchers
- www.thehindubusinessline.com — Sensex today | Stock Market Highlights: Benchmark indices trade in the red in late session, Sensex down 307.24 points at 76,957.27