(Sharecast News) - A global bond sell-off and surging oil prices hit Wall Street equities on Tuesday, with the S&P 500 and Nasdaq falling for the third straight session as hostilities in the Middle East stepped up a gear.
The Dow fell 0.8%, the S&P 500 slipped 0.7% and the Nasdaq dropped 1.0%. Meanwhile, the VIX volatility index soared 9.6%.
Brent crude jumped 4.6% to $94.65 a barrel, while WTI crude rose 5.2% to $90.22 a barrel, settling at its highest since 23 July after the US launched more strikes against Iranian targets.
President Donald Trump also threatened further attacks after both countries exchanged direct attacks over the weekend, escalating a conflict that had recently shifted toward economic pressure.
"If the failed Nation of Iran retaliates for this very justified attack, they will be hit again at a much harder and higher level, but it will not be the biggest attack of them all, that is waiting in the wings and, when it is over, there will be very little left of the Islamic Republic of Iran!" he said in a post on social media.
Higher energy prices reignited inflation concerns, leading to a substantial jump in bond yields across the globe, with 10-year yields in Germany and Japan hitting their highest since 2011 and 1996, respectively.
"September's reputation as one of the worst months of the year for markets, and in particular the US, seems well-justified, as a cocktail of worries combine to knock back bullish sentiment," said Chris Beauchamp, chief market analyst at IG.
In equity news, cybersecurity stocks were among the worst performers of the day, with CrowdStrike and Palo Alto Networks falling sharply, with the latter out of favour ahead of its results due out after the closing bell.
Chipmakers were also falling, with Nvidia, AMD and Micron Technology posting losses.
Apple shares performed well on John Ternus's first day as the tech behemoth's chief executive. Tim Cook, who had been at the helm for 15 years, moved into the executive chair position.
On the macro front, US factory activity continued to expand in August, with both the Institute for Supply Management and S&P Global manufacturing PMIs signalling further growth even as demand, output and supplychain conditions showed signs of cooling. The ISM's manufacturing PMI eased to 54.6 in August, down from 55.6 in July, while the S&P Global manufacturing PMI held steady at 53.9.
Elsewhere, US job openings were little changed in July, holding at 7.3m, according to the latest JOLTS report from the Bureau of Labor Statistics. Hires and total separations also steadied at 5.1m, with quits at 3.1m and layoffs and discharges at 1.7m, both broadly unchanged on the month. Openings remained stable at a 4.4% rate, with durable goods manufacturing the standout riser, adding 76,000 vacancies. The BLS also issued revisions for June, trimming job openings by 177,000 to 7.2m, hires by 16,000 to 5.3m, and total separations by 14,000 to 5.3m. Quits were revised down 19,000, while layoffs and discharges were revised up by the same amount.
Dow Jones - Risers
Apple Inc. (AAPL) $325.13 2.46%
Amgen Inc. (AMGN) $438.12 2.45%
Chevron Corp. (CVX) $211.05 2.38%
Johnson & Johnson (JNJ) $271.19 2.01%
Unitedhealth Group Inc. (UNH) $396.30 1.77%
Merck & Co. Inc. (MRK) $149.86 1.42%
Procter & Gamble Co. (PG) $146.21 0.75%
Verizon Communications Inc. (VZ) $50.30 0.56%
Salesforce.Com Inc. (CRM) $258.11 0.22%
Walgreens Boots Alliance, Inc. (WBA) $0.00 0.00%
Dow Jones - Fallers
Home Depot Inc. (HD) $319.77 -2.46%
Nike Inc. (NKE) $38.12 -2.41%
Caterpillar Inc. (CAT) $779.16 -2.30%
Goldman Sachs Group Inc. (GS) $1,002.56 -2.28%
American Express Co. (AXP) $324.19 -1.81%
Visa Inc. (V) $372.67 -1.77%
Microsoft Corp. (MSFT) $501.02 -1.55%
Intel Corp. (INTC) $88.97 -1.28%
Walt Disney Co. (DIS) $106.22 -1.24%
International Business Machines Corporation (CDI) (IBM) $231.40 -1.06%
S&P 500 - Risers
Edison International (EIX) $58.80 8.93%
Helmerich & Payne Inc. (HP) $46.21 6.03%
Regeneron Pharmaceuticals Inc. (REGN) $823.82 5.31%
Gilead Sciences Inc. (GILD) $149.92 4.34%
HP Inc (HPQ) $31.32 4.33%
CF Industries Holdings Inc. (CF) $135.60 4.28%
Archer-Daniels-Midland Co. (ADM) $84.55 4.01%
CVS Health Corp (CVS) $97.60 3.93%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $545.66 3.62%
Dollar General Corp (DG) $131.09 3.42%
S&P 500 - Fallers
Coterra Energy Inc. (CTRA) $32.56 -8.62%
Cadence Design Systems Inc. (CDNS) $313.04 -7.51%
Whirlpool Corp. (WHR) $37.94 -7.10%
Expedia Group Inc. (EXPE) $304.23 -6.60%
Oracle Corp. (ORCL) $141.32 -5.23%
Synopsys Inc. (SNPS) $414.82 -5.17%
Schlumberger Ltd. (SLB) $57.15 -4.91%
Intuit Inc. (INTU) $344.93 -4.87%
Fortinet Inc. (FTNT) $161.85 -4.79%
CSX Corp. (CSX) $48.70 -4.70%
Nasdaq 100 - Risers
Regeneron Pharmaceuticals Inc. (REGN) $823.82 5.31%
Gilead Sciences Inc. (GILD) $149.92 4.34%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $545.66 3.62%
Vertex Pharmaceuticals Inc. (VRTX) $547.65 2.47%
Apple Inc. (AAPL) $325.13 2.46%
Amgen Inc. (AMGN) $438.12 2.45%
Dollar Tree Inc (DLTR) $131.71 2.23%
Incyte Corp. (INCY) $125.01 2.18%
Skyworks Solutions Inc. (SWKS) $67.41 1.87%
eBay Inc. (EBAY) $104.98 1.41%
Nasdaq 100 - Fallers
Qvc Group Inc Series A (QVCGA) $0.34 -13.49%
Cadence Design Systems Inc. (CDNS) $313.04 -7.51%
Expedia Group Inc. (EXPE) $304.23 -6.60%
Synopsys Inc. (SNPS) $414.82 -5.17%
Intuit Inc. (INTU) $344.93 -4.87%
CSX Corp. (CSX) $48.70 -4.70%
Check Point Software Technologies Ltd. (CHKP) $134.47 -4.49%
Applied Materials Inc. (AMAT) $441.85 -4.43%
Autodesk Inc. (ADSK) $247.69 -4.30%
Charter Communications Inc. (CHTR) $146.19 -4.18%
34.98 (0.32%)
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