WASHINGTON — Renewed tensions between the United States and Iran sent the Dow Jones Industrial Average down 1.1%, while global oil prices surged more than 5%.
In New York trading on the 8th, the Dow closed 1.09% lower at 52,348.39, and the Standard & Poor's (S&P) 500 fell 0.28% to 7,482.71. The tech-heavy Nasdaq, however, ended the session up 0.2% at 25,870.65.
Stocks fell across the board after U.S. President Donald Trump said the ceasefire memorandum of understanding (MOU) with Iran appeared to be "over." But markets pared losses in the afternoon after Trump said he does not think the war with Iran "will restart," and the Nasdaq turned positive in late trading.
Oil prices climbed sharply. Brent crude futures for September delivery closed 5.2% higher at $78.02 a barrel, while West Texas Intermediate (WTI) rose 4.37% to $73.52.
Shares of consumer companies vulnerable to rising energy prices declined. Home Depot fell 2% and McDonald's slipped 1%. Semiconductor-related stocks, which had come under downward pressure the previous day, stabilized. The Philadelphia Semiconductor Index gained 2.23%, and Micron rose 1.11%. Broadcom led the chip rally, climbing 4.83% after signing a multi-year contract with Apple worth $30 billion (approximately 45 trillion won). Nvidia rose 3.65% on reports that China plans to allow its major AI companies, including Alibaba, ByteDance, and DeepSeek, to purchase H200 chips.
"The recent exchange of fire between the United States and Iran was a reminder that a lasting agreement between the two sides is never guaranteed," said Daniela Hathorn, senior market analyst at Capital.com. "Investors are reassessing geopolitical risks." Rob Haworth, senior investment strategist at U.S. Bank Wealth Management, said, "If damage occurs to Iran's infrastructure, markets may have to react more seriously given the possibility of Iranian retaliation."
