1st September 2026 – (New York) Stocks slipped on Monday as renewed tensions in the Middle East lifted oil prices and pushed longer‑dated Treasury yields higher, weighing on equities into the month‑end close. The S&P 500 fell 0.33 per cent to 7,686.14, the Nasdaq Composite eased 0.12 per cent to 26,370.89 and the Dow Jones Industrial Average dropped 374.09 points, or 0.7 per cent, to 53,185.90, with declines in Goldman Sachs and Alphabet dragging on the blue‑chip index.
The risk‑off tone followed confirmation that US forces struck two rocket launchers on Iran’s Larak Island on Sunday, the first publicly acknowledged action against Iranian positions since late July. Iranian state media reported retaliatory attacks on US facilities in Jordan. Crude rallied on the headlines, with West Texas Intermediate settling 2.83 per cent higher at $85.76 a barrel and Brent up 2.71 per cent at $90.49, fuelling a rise in yields and adding to pressure on rate‑sensitive shares.
Even so, August ended in positive territory for major benchmarks. The Dow advanced about 1.3 per cent for a fifth consecutive monthly gain and its 15th positive month in the past 16. The S&P 500 and Nasdaq rose 2.6 per cent and 3.9 per cent respectively, their first one‑month increases since May, as technology outperformed. The S&P 500 information technology sector climbed more than 6 per cent, with notable gains in Nvidia, Microsoft and Micron Technology.
Strategists cautioned that the market’s breadth beyond artificial‑intelligence leaders depends on a continued soft‑landing narrative and some easing in energy prices and yields. While oil in the $80–$90 range was described as manageable for growth, a sustained move above $100 could become restrictive. Sentiment indicators signalled rising investor nervousness despite indices sitting not far from recent highs.
Attention now turns to a busy data slate that could recalibrate expectations for policy. Investors will parse manufacturing and services readings mid‑week, ahead of Friday’s August employment report; the latest survey points to a modest increase in non‑farm payrolls. September’s seasonality, often a challenging period for equities, and developments in the Middle East are likely to keep volatility elevated. Futures trading on Monday night was little changed, with modest moves across the Dow, S&P 500 and Nasdaq‑100 contracts.
