U.S. stocks closed lower on Monday, September 9, with all three major indices in the red as the Dow Jones Industrial Average dropped over 600 points. The sell-off came as the U.S. military conducted strikes on targets near Iran's Kharg Island, escalating geopolitical tensions and fueling concerns about inflation.
Intel (NASDAQ: INTC) shares surged more than 9%, leading the session's top 20 by turnover, on reports the company may introduce a new round of price adjustments for its consumer processor lineup in October. The move lifted sentiment in the semiconductor space despite the broader market weakness.
Most Chinese stocks trading in the U.S. declined, with Baidu falling over 6%, KE Holdings down more than 3%, and PDD Holdings slipping nearly 3%. The losses tracked the broader risk-off tone across global markets.
In commodities, West Texas Intermediate crude climbed to its highest level in over three months following the attack on Kharg Island, a key Iranian oil export hub. Copper prices extended their rally, while gold retreated as investors weighed the geopolitical premium in crude against a firmer dollar outlook.
European equities held steady, though Swiss drugmaker Novartis posted a record single-day decline, dragging on the Stoxx 600. The regional benchmark remained supported by defensive sectors amid the geopolitical uncertainty.
Where the action is
The Trump administration is intensifying economic pressure on Tehran, with U.S. forces striking targets near Iran's oil export terminal. A second Iranian tanker was hit near Jask, and Iranian officials have warned crew members on vessels near Kuwait and Bahrain to abandon ship, signaling a broader confrontation.
U.S. officials clarified the strikes were aimed at targets near Iran's oil export infrastructure, not a ground offensive. Missiles hit an Iranian tanker near Kharg Island, while a U.S. underwater drone reportedly malfunctioned in the Middle East, adding to operational complexities.
Treasury Secretary Bessent described himself as the "house" in markets, daring investors to bet against the dollar and the yen. His comments came as the yen weakened, with speculators testing the administration's tolerance for further depreciation.
Serbian President Vucic announced that parliamentary elections will be held on October 25. Meanwhile, the European Union and Canada are planning a comprehensive cooperation agreement to deepen their partnership across trade, security, and technology.
Company headlines
Apple's incoming CEO will unveil a foldable iPhone at Wednesday's event, marking one of the most anticipated product launches in years. The announcement is expected to set the tone for the company's next growth phase.
OpenAI's chief financial officer said the company's enterprise business is seeing strong momentum, underscoring robust demand for its AI tools. Qualcomm announced a data center infrastructure partnership with Amazon Web Services, sending its shares up 6% on the news.
SpaceX's weight in the Nasdaq index is expected to increase, potentially triggering over $10 billion in passive net buying. The rebalancing could provide a significant boost to the stock's liquidity.
The U.K.'s air traffic control system suffered another technical failure, causing widespread flight cancellations and disrupting travel for thousands of passengers. Apple's stock reaction to major iPhone launches was also scrutinized, with historical data showing mixed performance.
SpaceX CEO Elon Musk faces a series of challenges to push the company's valuation higher, while lululemon's new CEO inherits a host of unresolved issues, from slowing sales growth to intensifying competition.
Market commentary
Bessent said the Treasury's buyback program aims to "cool" the bond market's fever, denying that the recent sell-off in Treasuries stems from credit concerns. The comments came as short-dated Treasuries led declines, while oil prices rose into the close, stoking inflation fears.
The S&P 500 posted its second straight loss, with elevated crude prices adding to worries that inflation could persist. New York foreign exchange trading saw the dollar soften, while the Canadian dollar gained after Bessent discussed U.S.-Canada trade relations.
The U.N. Secretary-General urged a resumption of Russia-Ukraine peace talks, as officials from both sides acknowledged the conflict could extend into next year, with expectations that Putin may escalate attacks this winter.
The U.S. Treasury is set to expand its buyback program, with Wall Street expecting single-operation sizes of up to $10 billion. A 3-year note auction drew the highest yield since 2024, reflecting investor demand for higher compensation.
U.S. consumer credit rose by $18.062 billion in July, exceeding the expected $11.34 billion gain, driven by a sharp increase in non-revolving credit. European bonds edged higher as oil prices eased slightly, providing some relief to fixed-income investors.
Canadian Prime Minister Carney said tariffs on U.S. goods are intended to protect Canada, not escalate tensions. The remarks aimed to de-escalate trade friction while signaling Ottawa's commitment to defending its economic interests.
European bond markets posted small gains, supported by a modest pullback in crude prices. The combination of geopolitical risk and economic data continues to drive volatility across asset classes, keeping investors on edge.
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