U.S. equities retreated on Monday as rising tensions with Iran prompted investors to pare risk exposure, with the S&P 500 and Nasdaq Composite posting modest declines. The S&P 500 fell 0.27% to 7,653.60, while the Nasdaq Composite dropped 0.63% to 26,015.94, led lower by the information technology sector, which slid 1.11%. The Dow Jones Industrial Average bucked the trend, rising 0.21% to 53,389.19.
Tech heavyweights Nvidia led sector losses, declining 2.44%, as investors reassessed valuations ahead of the company’s quarterly earnings report. Apple and Amazon.com each gained less than 1%, providing limited support. The S&P 500’s health care sector also retreated, falling 0.57%.
Geopolitical concerns intensified after U.S. Treasury Secretary Scott Bessent warned of an "economic D-Day" against Iran in a Financial Times opinion piece. The U.S. indicated it could impose sweeping economic sanctions targeting Iran’s trading partners, describing the move as "the largest financial offensive of all time." The rhetoric has heightened uncertainty in global markets, particularly in energy-sensitive sectors.
Treasury yields came under pressure, with 30-year bonds reaching a 19-year high last week before the U.S. Treasury announced stabilization measures. The 30-year yield rose 0.27% on Monday, reflecting ongoing jitters over inflation and policy risks.
Investors are also bracing for key economic data releases this week, including the Federal Reserve’s preferred inflation gauge, the PCE Price Index, due Wednesday. Federal Reserve Chair Kevin Warsh is scheduled to speak at the Jackson Hole Symposium later in the week, where market participants will seek further clarity on monetary policy direction.
