US Stocks Fall Amid Renewed West Asia Strikes, Rising Oil Prices

NEW YORK, Sept 1 (NNN-Xinhua) -- US stocks finished lower on Monday as a fresh round of US military strikes against Iranian targets triggered a sharp rise in global crude oil prices, adding to lingering concerns over interest rate hikes, reported Xinhua.

The Dow Jones Industrial Average fell by 374.09 points, or 0.7 per cent, to 53,185.9. The S&P 500 sank 25.62 points, or 0.33 per cent, to 7,686.14. The Nasdaq Composite Index shed 31.53 points, or 0.12 per cent, to 26,370.89.

Nine of the 11 primary S&P 500 sectors ended in the red, with communication services and utilities leading the laggards by dropping 1.63 per cent and 1.18 per cent, respectively. Meanwhile, energy and technology gained 2.1 per cent and 0.3 per cent, respectively.

Geopolitical tensions flared after the United States conducted strikes against Iranian rocket launch sites in response to threats of naval mining in the Strait of Hormuz, marking the first direct military action between the two sides in several weeks.

The military escalation drove global energy benchmarks higher on Monday. West Texas Intermediate for October delivery increased by US$2.36, or 2.83 per cent, to settle at US$85.76 a barrel on the New York Mercantile Exchange. Brent crude for November delivery went up US$2.39, or 2.71 per cent, to settle at US$90.49 a barrel on the London ICE Futures Exchange.

Monetary policy uncertainty continued to hang over the market following Federal Reserve Chair Kevin Warsh's hawkish address at the Jackson Hole Economic Policy Symposium on Friday. Market expectations for a 25-basis-point interest rate increase at the Fed's upcoming September meeting rose to 62 per cent over the weekend, up significantly from about 40 per cent a week prior.

With the second-quarter corporate reporting cycle winding down, market participants are now focusing on the US Labour Department's August nonfarm payrolls report, scheduled for release on Friday, for further insight into the US economy's health.

--NNN-XINHUA

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