NEW YORK, Sept. 1 (Xinhua) -- U.S. stocks lost ground on Tuesday as a new wave of U.S. military strikes against Iran drove crude oil prices higher, compounding pressure from climbing U.S. bond yields.
The Dow Jones Industrial Average fell by 419.02 points, or 0.79 percent, to 52,766.88. The S&P 500 sank 54.67 points, or 0.71 percent, to 7,631.47. The Nasdaq Composite Index shed 271.12 points, or 1.03 percent, to 26,099.77.
Seven of the 11 primary S&P 500 sectors ended in the red, with consumer discretionary and industrials leading the laggards by dropping 1.89 percent and 1.39 percent, respectively. Meanwhile, energy and utilities led the gainers by adding 1.54 percent and 0.85 percent, respectively.
Global energy markets rallied sharply following the fresh round of U.S. airstrikes on Iranian targets. West Texas Intermediate for October delivery went up 4.46 U.S. dollars, or 5.2 percent, to settle at 90.22 dollars a barrel on the New York Mercantile Exchange. Brent crude for November delivery gained 4.16 dollars, or 4.6 percent, to settle at 94.65 dollars a barrel on the London ICE Futures Exchange.
Fixed-income pressures intensified alongside rising energy benchmarks. The yield on the benchmark 10-year U.S. Treasury note rose to 4.79 percent, touching its highest intraday level since January 2025, while the 30-year bond yield climbed to 5.26 percent, hovering near multi-decade highs.
On the macroeconomic front, data from the Job Openings and Labor Turnover Survey showed domestic job openings ticked up slightly in July, signaling labor market stability. Separately, the Institute for Supply Management (ISM) reported that U.S. manufacturing activity expanded for the eighth consecutive month in August, though the pace of expansion moderated slightly.
"Another firm ISM manufacturing index boosts confidence in the durability of the recovery in the sector, fuelled by the ongoing surge in tech-related capital expenditure," wrote James Knightley, chief international economist at ING. "However, the economy continues to create limited numbers of jobs with wage pressures remaining remarkably benign."
On the trade front, Canadian Prime Minister Mark Carney stated that a mutually beneficial bilateral agreement with the United States remains achievable, but noted that formal discussions cannot resume amid public rhetoric from U.S. officials targeting Canada.
In corporate earnings, cybersecurity firm Palo Alto Networks and Dell Technologies fell 5.24 percent and 6.8 percent, respectively, ahead of their quarterly financial disclosures after the closing bell. Market attention will turn to Broadcom's quarterly report on Wednesday, while the U.S. Labor Department's August employment report on Friday remains the key economic release of the week.
