US stocks finished lower on Monday after the US and Iran traded fire for the first time in a month, renewing concerns about the war and pushing oil prices higher.
The S&P 500 fell 0.33% to 7,686.14, while the Nasdaq Composite slipped 0.12% to 26,370.89. The Dow Jones Industrial Average dropped 374.09 points, or 0.7%, to 53,185.90, weighed down by losses in Goldman Sachs and Alphabet.
The US confirmed it struck two rocket launchers on Iran’s Larak Island on Sunday, marking the first publicly acknowledged US strike on Iranian positions since late July. Iranian state media reported that Tehran retaliated with attacks on US bases in Jordan.
Despite Monday’s decline, Wall Street finished August higher. The Dow gained more than 1% for its fifth consecutive monthly advance, while the S&P 500 rose 2.6% and the Nasdaq gained 3.9%. Both the S&P 500 and Dow reached record highs during the month.
Technology was one of only two S&P 500 sectors to finish higher on Monday. Nvidia gained 1.4% and Tesla rose 5.5%, while Apple slipped 0.9% on Tim Cook’s final day as chief executive.
Australian Market Outlook
Australian shares are set to open lower, with S&P/ASX 200 futures down 22 points, or 0.2%, to 9,002.
The weaker lead from Wall Street and higher global bond yields are likely to weigh on the broader market, while the rise in crude oil could provide some support for local energy stocks.
Investors will also be watching developments in the Iran war and their impact on commodity prices, inflation expectations and global interest rates. Brent crude’s return above US$90 a barrel puts energy markets firmly back in focus as September trading begins.
