Oil prices fell as the U.S. Treasury Secretary announced plans for additional sanctions aimed at punishing Iran, while stock markets were mostly lower on Monday, with investors turning their attention to key U.S. inflation data and Nvidia’s earnings report.
Although the end of August is usually a period of low news activity for the markets, the conflict between the U.S. and Iran, the trade dispute between the United States and Canada, and Nvidia’s earnings—which serve as a bellwether for the artificial intelligence sector—are keeping investor interest alive.
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While the Dow posted modest gains, the S&P 500 and Nasdaq declined.
Oil prices fell by more than 2% as Besent unveiled plans for “economic suffocation” of Iran, expanding Washington’s threats of secondary sanctions and warning of serious consequences for countries that do not participate in the campaign.
However, his announcement did not name any specific countries other than Iran, nor did it provide a timeline.
In Europe, the London Stock Exchange closed higher, while Paris and Frankfurt ended the trading session with losses.
Investors will also be watching the annual meeting of central bankers, economists, and heads of financial institutions in Jackson Hole, U.S., this week, seeking greater clarity on U.S. monetary policy.
The meeting comes after Bessent’s statement that the U.S. Treasury Department will repurchase more of its own bonds, in an effort to lower borrowing costs, after the yield on 30-year bonds rose to levels last seen in 2007.
These moves are likely to draw a reaction from Federal Reserve Chairman Kevin Warsh, as they complicate the Fed’s efforts to curb inflation, said Ozkardeskaia of Swiss Quote.
“That’s why Jackson Hole could turn out to be explosive,” she added.
Earlier, Asian markets faced a new wave of selling pressure on tech stocks as investors await Nvidia’s earnings report on Wednesday.
South Korea’s Kospi tech index fell more than 3%, weighed down by a significant drop in Samsung Electronics shares, while Tokyo and Shanghai also closed lower.
In the foreign exchange markets, the Canadian dollar fell 0.7% against the U.S. dollar, extending its losses over the past month, after Ottawa pledged to respond with countermeasures to the new U.S. tariffs following the collapse of trade talks between the two neighboring countries.
Source: KYPE
