U.S. equity benchmarks declined at the start of the week as geopolitical tensions in the Middle East and renewed inflation concerns weighed on sentiment.
The Dow Jones Industrial Average fell 0.4% to 53,337 points in early trade, while the S&P 500 slipped 0.2% to 7,694 and the tech-heavy Nasdaq 100 edged down 0.2% to 29,403. Futures pointed to a softer open, with the Dow indicated 0.3% lower at 53,396 and the Nasdaq 100 down 0.2% at 29,362 ahead of the cash session.
Oil prices climbed above $91 per barrel for Brent crude as U.S. forces conducted retaliatory strikes in Iran, targeting missile launch sites near the Strait of Hormuz. Iran responded with attacks on two U.S. bases in Jordan, escalating regional tensions and stoking energy-price volatility.
Federal Reserve Governor Kevin Warsh’s hawkish remarks from Jackson Hole over the weekend reinforced expectations for tighter monetary policy, with markets pricing in a higher probability of a near-term rate hike. Warsh warned that inflation progress had been insufficient, stating that central bankers still had "work to do."
Among individual movers, Aon shares fell nearly 2% in pre-market trading after the insurance broker confirmed plans to acquire USI Insurance Services from KKR for $17 billion. The all-cash deal, one of the largest in the fragmented insurance brokerage sector, aims to expand Aon’s presence in the mid-market U.S. commercial insurance space. The company expects the acquisition to boost adjusted earnings by 2028.
GameStop slumped more than 5% before the open after issuing a Q2 revenue warning, forecasting net sales of $780–800 million versus $972 million a year earlier. The decline reflects store closures and the divestment of its French operations.
In the Magnificent Seven cohort, Nvidia and Meta eked out modest gains of 0.7% and 0.5%, respectively, while Tesla, Alphabet, Amazon, Apple and Microsoft all traded lower, with declines ranging from 0.3% to 0.9%.
Utilities in California came under pressure after new wildfire regulations triggered share drops of 7% to 14% for PG&E, Edison International and Sempra. Specialty chemicals and fragrance stocks also declined, with Givaudan down 0.4% and International Flavors & Fragrances falling 7% in pre-market trading amid a new Indian cartel probe and margin pressures.
In Switzerland, the Swiss Market Index (SMI) fell 0.36% to 14,369.89 points, with Holcim leading decliners at -1.5%. Logitech gained 0.5%, while defensive plays such as Swisscom and insurance names provided support. Roche slipped 0.5% and Nestlé eased 0.1%. UBS shares were modestly lower at -0.2% as lawmakers debated regulatory proposals that could dilute earlier draft measures.
Analyst commentary also drove moves, with Gurit surging 4.2% on upgrades and Accelleron tumbling 4.0% amid ongoing volatility.
