With tensions between the United States and Iran flaring again, the three major indexes on Wall Street ended mixed on the 8th (U.S. Eastern time).
The Dow Jones Industrial Average fell 576.76 points, or 1.09%, to close at 52,348.39. The Standard & Poor's (S&P) 500 dropped 21.14 points, or 0.28%, to end at 7,482.71, while the tech-heavy Nasdaq composite added 51.96 points, or 0.20%, to finish at 25,870.65.
As armed clashes between the United States and Iran resumed and U.S. President Donald Trump said the memorandum of understanding (MOU) for ending the conflict with Iran "seems to be over," Wall Street fell across the board early in the session. Investor anxiety deepened after Trump even raised the possibility of additional airstrikes that night.
However, in the afternoon, after Trump said he did not think "a war with Iran will start again," the major indexes gradually trimmed losses, and the Nasdaq managed to turn higher late in the session.
Large-cap tech stocks that had been weak also strengthened on favorable news. Broadcom jumped 4.8% on word that Apple expanded its semiconductor supply deal with the company to $30 billion. Nvidia also climbed 3.7% after reports that Chinese authorities will allow domestic artificial intelligence (AI) corporations to buy H200 chips on a limited basis.
Still, concerns that geopolitical tensions in the Middle East could flare again weighed on sentiment. In addition, the minutes of the Federal Open Market Committee (FOMC) for June, released the same day, reaffirmed inflation worries, adding pressure to the market.
As Middle East tensions rose again, international oil prices also surged. September Brent futures rose 5.20% from the previous session to $78.02 a barrel, while August West Texas Intermediate (WTI) futures gained 4.37% to $73.52 a barrel. Brent hit the highest since June 19, and WTI the highest since June 22.