U.S. stocks fell across the board as expectations for negotiations between the U.S. and Iran weakened. The renewed conflict over the Strait of Hormuz has driven international oil prices higher, while caution ahead of the upcoming U.S. Consumer Price Index (CPI) report dampened investor sentiment.
On August 11, the Dow Jones Industrial Average closed down 184.13 points (0.34%) at 53,791.85. The S&P 500 index fell 24.91 points (0.32%) to 7,728.20, and the tech-heavy Nasdaq Composite dropped 159.91 points (0.60%) to 26,445.45.
The market was pressured by renewed uncertainty in the Middle East. Iran stated it would continue to close the Strait of Hormuz unless the U.S. accepts its conditions for ending the conflict. This diminished hopes for a swift agreement that would normalize oil transportation.
International oil prices rose, with Brent crude reaching $88.91 per barrel, up 1.4%, and West Texas Intermediate (WTI) climbing 1.3% to $83.20. The S&P 500 energy sector index also increased by 1.1% due to rising oil prices.
Investors are closely watching the U.S. July CPI report set to be released on August 12. Concerns about inflation are growing as energy prices rise again due to the conflict in Iran. Market speculation is divided over the possibility of a Federal Reserve interest rate hike in September.
Large tech stocks showed weakness, with Amazon down 2.1% and Alphabet, Google's parent company, falling 3.8%, contributing to the declines in the S&P 500 and Nasdaq. SpaceX also dropped by about 4%.
In contrast, semiconductor stocks recovered somewhat from previous losses. The Philadelphia Semiconductor Index rose 0.87% to 12,098.5. Micron gained 0.8%, and AMD increased by 1.0%, while Nvidia ended the day flat.
Notably, SK Hynix's American Depositary Receipts (ADR) surged 4.70% to close at $141.65. The semiconductor index's rebound from a nearly 2.9% drop the previous day contributed to this strong recovery.
The yield on the U.S. 10-year Treasury note slightly decreased to around 4.695%. The market views the situation in the Middle East, movements in international oil prices, and the CPI results as key factors that will influence the Federal Reserve's future interest rate decisions.
* This article has been translated by AI.
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