Wall Street Slumps Amid Escalating Middle East Tensions and North American Trade Conflict

Here is the latest from New York financial markets.

Reopening after the Labor Day holiday, all three major U.S. stock indices finished lower across the board.

By sector, healthcare dropped more than 2%, and financial stocks fell over 1%, standing out with significant declines.

International oil prices surged after Yemen's pro-Iranian Houthi rebels launched missile and drone attacks targeting Saudi Arabia's Aramco oil facilities and an air base.

Brent crude broke through $99 a barrel during the session to hit its highest level since July, while West Texas Intermediate (WTI) also extended its winning streak to six consecutive trading sessions.

Fears of inflation spread amid concerns that logistics routes could be blocked in the Red Sea following the Strait of Hormuz, which immediately led to a sharp spike in Treasury yields.

The yield on the 10-year Treasury note topped 4.8%, and the 30-year bond exceeded 5.26%, inching close to a 19-year high. Combined with North American trade frictions such as Canada's implementation of retaliatory tariffs, investor sentiment was severely dampened.

The August Producer Price Index (PPI) is scheduled to be released on September 10, followed by the Consumer Price Index (CPI) on the 11th.

The market is closely monitoring whether rising oil prices will fuel inflation and intensify the Federal Reserve's tightening stance.

Among individual stocks, Intel skyrocketed more than 9% amid news of achieving foundry yields utilizing ASML's latest equipment, coupled with prospects for price hikes on major processors.

As Middle East risks and soaring oil prices feed into inflationary pressures, key inflation data slated for release later this week is expected to determine the direction of monetary policy.
※ Please note: This article was translated by AI and may contain errors.