The S&P 500 and NASDAQ Composite declined on Monday as semiconductor stocks fell and US Treasury Secretary Scott Bessent declared “Operation Economic Outcast” against Iran.
The S&P 500 slid 0.28% to end at 7,652.86, while the NASDAQ Composite dropped 0.76% to 25,980.19. The Dow Jones Industrial Average closed 0.26% or 140.15 points higher at 53,417.16.
Micron Technology Inc stock fell 5.83% to $910.43, while Broadcom and Advanced Micro Devices descended 2.63% and 3.49%, respectively. SanDisk Corporation shares were down 6.45%.
Brent Crude, the international standard, was up 0.52% to $92.67 per barrel. West Texas Intermediate futures rose 0.82% to $85.71.
Treasury Secretary Bessent on Monday announced the US is launching an economic onslaught against financial connections of Iran around the globe.
“Our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone,” he said.
“President Trump has taken action that his predecessors have long deferred. Under his leadership, America is no longer managing the Iranian threat. We are ending it. Those who stand with the United States will reap the rewards of our partnership. Those who tether themselves to Tehran should expect to share in the isolation of a withering regime,” he added.
Treasury yields declined slightly despite the US Treasury department’s announcement to at least double the debt buybacks in the next few months. The 10-year yield was around 4.71%, down 3 basis points. The 30-year yield was down four basis points at 5.23%.
Dampening sentiments, US President Donald Trump announced that beginning next year he would double tariffs on Canadian vehicles, automotive parts and steel.
“Canada has been ripping off the United States of America for years. Their ridiculously high tariffs on our Farmers and farm products has made life impossible for these great American Patriots, and has long created a 60 Billion Dollar Deficit between our two Countries. Not sustainable, and NOT ANYMORE! On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%,” he said.
“Build in the U.S. and there are ZERO TARIFFS. Canada will be treated like a State no longer! On Trade, and in other ways, also, they are among the worst Nations in the World to deal with,” he said.