NEW YORK, Aug. 31 (Xinhua) -- U.S. stocks finished lower on Monday as a fresh round of U.S. military strikes against Iranian targets triggered a sharp rise in global crude oil prices, adding to lingering concerns over interest rate hikes.
The Dow Jones Industrial Average fell by 374.09 points, or 0.7 percent, to 53,185.9. The S&P 500 sank 25.62 points, or 0.33 percent, to 7,686.14. The Nasdaq Composite Index shed 31.53 points, or 0.12 percent, 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 percent and 1.18 percent, respectively. Meanwhile, energy and technology gained 2.1 percent and 0.3 percent, 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 2.36 U.S. dollars, or 2.83 percent, to settle at 85.76 dollars a barrel on the New York Mercantile Exchange. Brent crude for November delivery went up 2.39 dollars, or 2.71 percent, to settle at 90.49 dollars 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 percent over the weekend, up significantly from about 40 percent a week prior.
In corporate developments, mega-cap technology equities showed mixed performance. Semiconductor heavyweight Nvidia gained 1.48 percent, rebounding from Friday's pullback, while Tesla jumped 5.51 percent to rank among the top gainers on both the S&P 500 and Nasdaq 100.
Conversely, Amazon fell 2.5 percent after the Federal Trade Commission and 22 states filed a joint lawsuit alleging unfair digital advertising auction pricing practices. Apple dipped nearly 1 percent as Tim Cook marked his final day as CEO ahead of his scheduled retirement.
With the second-quarter corporate reporting cycle winding down, market participants are now focusing on the U.S. Labor Department's August nonfarm payrolls report, scheduled for release on Friday, for further insight into the U.S. economy's health.
