As clashes between the United States and Iran intensified, international oil prices jumped and global bond selling continued, sending the three major U.S. stock indexes lower across the board on the 1st (Eastern time).
The Dow Jones Industrial Average fell 419.02 points, or 0.79%, to close at 52,766.88. The Standard & Poor's (S&P) 500 fell 54.67 points, or 0.71%, to 7,631.47, and the tech-heavy Nasdaq composite lost 271.12 points, or 1.03%, to 26,099.77.
The United States launched additional airstrikes against Iran for the second time in two days. U.S. Central Command (CENTCOM), which oversees operations against Iran, said on X (formerly Twitter) that it had begun strikes on Islamic Revolutionary Guard Corps (IRGC) targets, describing it as a response to the IRGC's attempts to attack civilian ships in the Strait of Hormuz and U.S. service members deployed in the area.
Iran immediately launched retaliatory strikes, sending international oil prices up around 5%. November Brent crude futures settled at $94.65 a barrel, up 4.60% from the previous session, while October West Texas Intermediate (WTI) rose 5.20% to $90.22 a barrel. These were the highest levels since July 24 and July 23, respectively.
With high oil prices stoking inflation concerns, the intensifying sell-off in the global bond market also weighed on stocks. The U.S. 10-year Government Bonds yield extended gains to around 4.79%, the highest since January 2025.
By sector, rate-sensitive technology stocks broadly weakened. The Philadelphia Semiconductor Index fell 2.1%. American depositary receipts (ADRs) of SK hynix dropped 2.31%, and AMD and Micron declined 2.36% and 2.64%, respectively.