The September trading session started with escalating tensions with Iran after the U.S. launched fresh attacks on the Middle Eastern country near Hormuz.
- U.S. President Donald Trump confirmed the strikes in a post on Truth Social, saying, “The strikes are large and powerful, and in retaliation for the Iranians’ failed attempt at adding sea mines to the Strait…”
- Oil prices climbed higher amid the tensions, with no peace deal options in sight for a war that has dragged on for over six months.
- Rising oil prices pushed U.S. Treasury yields higher, with the 10-year yield climbing to 4.806%, the highest level since April 2007.
U.S. stock futures were sliding in the overnight session late Tuesday amid fresh U.S. strikes on Iranian targets near the critical Strait of Hormuz.
Dow futures fell 0.01%, while the S&P 500 and Nasdaq-100 futures declined 0.04% and 0.15%, respectively, at 10:23 PM EDT.
On Tuesday, all three benchmark indexes closed lower amid rising political tensions. The Nasdaq Composite led the losses, shedding 271 points to close more than 1% lower. The Dow Jones Industrial Average and S&P 500 fell 0.79% and 0.71%, respectively.
| Index | Move | Close |
| Dow Jones Industrial Average | -0.79% | 52,766.88 |
| S&P 500 | -0.71% | 7,631.47 |
| Nasdaq Composite | -1.03% | 26,099.77 |
Key US Market Drivers
The September trading session started with escalating tensions with Iran after the U.S. launched fresh attacks on the Middle Eastern country near Hormuz.
U.S. President Donald Trump confirmed the strikes in a post on Truth Social, saying, “The strikes are large and powerful, and in retaliation for the Iranians’ failed attempt at adding sea mines to the Strait, which currently has no mines (They have been completely removed or detonated!), and the Iranians shooting eight missiles, all successfully knocked down, at our Military Base in Jordan. If the failed Nation of Iran retaliates for this very justified attack, they will be hit again at a much harder and higher level, but it will not be the biggest attack of them all, that is waiting in the wings and, when it is over, there will be very little left of the Islamic Republic of Iran!”
The U.S. Central Command also posted about the second day of attacks on Iran on X, saying that at 12 p.m. ET on Tuesday, U.S. forces began striking Islamic Revolutionary Guard Corps (IRGC) targets in Iran in retaliation for the “recent attempted attacks by the IRGC against commercial shipping in the Strait of Hormuz and against American service members deployed to the region.”
Brett Erickson, Managing Principal, Obsidian Risk Advisors, said in a post on X, “The United States is seeking to strike positions that will allow them to increase traffic through the Strait of Hormuz, thus lengthening the runway the U.S. and world has to impose their own economic warfare on Iran. Every action taken is to serve the purpose of economic warfare. Once each side realizes that the status quo is the best either can accomplish, there will be no need to continue military strikes.”
Oil prices climbed higher amid the tensions, with no peace deal options in sight for a war that has dragged on for over six months. Brent crude futures expiring in November were up about 1.38% to trade at $95.96 a barrel at the time of writing. Meanwhile, WTI crude futures expiring in October were trading at $91.26 per barrel, up 1.15%.
The rising oil prices pushed the U.S. Treasury yields higher up, with the U.S. 10-year Treasury yield climbing to 4.806%, the highest level since April 2007. The U.S. 30-year Treasury yield was trading at 5.283% at the time of writing.
Economist Peter Schiff said in a post on X, “Oil is breaking out, now trading above $90. It won’t be long before it’s over $100. Not only will this push up the CPI and bond yields, but it will make driving to the polls in November much more costly for voters. The politics get even worse if the Fed hikes rates in September.”
On the economic front, the August jobs report is set for release on Friday. Monthly data on the manufacturing and services sectors are also due this week.
Trending Stocks To Watch
Trump Media & Technology Group Corp. (DJT): Escalating tensions in the Middle East and their impact on the domestic environment drew attention to Trump’s media company.
United States Oil Fund (USO): The oil exchange-traded fund jumped onto the retail radar amid rising oil prices as the war with Iran escalates into its seventh month. USO stock was up 0.41% overnight.
Dell Technologies Inc. (DELL): Shares of the computer hardware maker jumped nearly 9% higher in the overnight session late Tuesday after its second-quarter results impressed investors. The company also significantly raised its full-year financial outlook, citing explosive global demand for AI-optimized servers, boosting sentiment further.
Credo Technology Group Holding Ltd. (CRDO): Shares of the company plunged more than 9% overnight despite posting a beat in its first quarter. However, declining profit margins and rising operating expenses raised investor concerns around the company’s long-term performance.
Other Market Trends
Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY), the Invesco QQQ Trust (QQQ) and the SPDR Dow Jones Industrial Average ETF Trust (DIA) were all trending lower at the time of writing.
The iShares 20+ Year Treasury Bond ETF (TLT) was down 0.18% amid ‘neutral’ sentiment.
Asian markets were trading lower at the open on Wednesday. South Korea’s KOSPI, China’s SSE Composite, Japan’s Nikkei 225 and Australian stocks were all in the red at the time of writing.
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