(Updates with latest market prices and developments.)
US benchmark equity indexes were mixed intraday as Treasury Secretary Scott Bessent announced a global sanctions plan targeting countries doing business with Iran.
The Nasdaq Composite was down 0.6% at 26,036.8 after midday Monday, while the Dow Jones Industrial Average edged up 0.1% to 53,342.9. The S&P 500 declined 0.3% to 7,653.6. Among sectors, technology led the laggards, while consumer staples and communication services saw the biggest gains.
The US will reportedly impose sanctions on countries that do business with Iran. China, Russia, India, Pakistan, Qatar and Turkey, among others, still trade with Tehran, Axios reported.
"No one is above the reach of US sanctions," Bessent said Monday in response to a question on whether the Trump administration would target Chinese banks, CNBC reported.
Last week, President Donald Trump threatened to launch "economic warfare" against Iran and impose financial consequences for countries that seek to provide any form of support to Tehran.
The US will raise tariffs on Canadian cars, trucks and steel to 50%, effective Jan. 1, 2027, Trump said Monday on Truth Social.
West Texas Intermediate crude oil fell 2.3% to $85.02 a barrel, while Brent dropped 2.2% to $92.33.
Iran's state-controlled Persian Gulf Strait Authority warned on X that vessels breaching its protocols in the Strait of Hormuz could face restrictions on future passages.
US Treasury yields were mixed intraday, with the 10-year yield down 4.8 basis points at 4.69%, while the two-year yield was unchanged at 4.23%.
Federal Reserve Chair Kevin Warsh's debut Jackson Hole speech on Friday is unlikely to help clear up investor confusion over the Treasury Department's bond market intervention, Morgan Stanley said in a note sent Monday. The firm's economists view the expansion in bond buybacks announced last week as evidence that the Treasury had become uncomfortable with a rise in long-term interest rates.
Markets are currently pricing in a 58% probability that the Fed will keep its benchmark rate steady in September, with the remaining odds in favor of a 25-basis-point hike, according to the CME FedWatch tool.
In company news, Nvidia (NVDA) shares fell 2.4% intraday, the second-worst performer on the Dow. The technology bellwether is scheduled to release its latest quarterly earnings on Wednesday.
Some Nvidia customers are facing price increases of over 15% on servers equipped with its artificial intelligence chips due to rising memory costs, Bloomberg News reported Saturday, citing people familiar with the matter.
Chip-related stocks were among the notable laggards on the S&P 500 intraday, with SanDisk (SNDK) down 7%, the steepest decline on the index. Micron Technology (MU) and Western Digital (WDC) shed more than 5% each.
Marvell Technology (MRVL), CrowdStrike (CRWD), Salesforce (CRM) and Intuit (INTU) are also slated to post their results this week.
Spot gold rose 1% to $4,648.43 per troy ounce, while silver lost 1% to $69.63 per ounce.
