FX.co ★ US Stocks Fall as Rising Oil Prices Fuel Inflation Fears

US stock indices ended mostly lower on Monday as rising oil prices intensified inflation concerns and strengthened expectations of another Federal Reserve rate hike. The S&P 500 slipped 0.3%, the Nasdaq edged down 0.1%, and the Dow Jones Industrial Average fell 374 points.

Oil prices advanced after the US and Iran exchanged fresh strikes, following earlier signals from both sides of blockades targeting tankers and other vessels in the Persian Gulf. The disruptions have prolonged a suspension of regional exports, adding to supply worries.

US Treasury yields climbed across the curve, pressuring rate-sensitive sectors. Mega-cap tech “hyperscalers” were under particular strain, with Alphabet down 2.1%, Microsoft off 1.2%, and Amazon losing 2.5%. Financial stocks also finished mostly lower: Mastercard declined 1%, while Goldman Sachs slipped 0.8%.

In contrast, Nvidia gained 1.4% after unveiling a $3.5 billion stake in MediaTek, broadening its exposure to global semiconductor manufacturing and AI infrastructure.

For August, the S&P 500 rose 2.6%, the Nasdaq 100 climbed 4.2%, and the Dow added 701 points.