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Update: US Equity Indexes Drop as Crude Oil Tops $100 Mark Amid Worsening Iran War, Yields Surge After Treasury Triples Government-Debt Buybacks

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(Updates with index/price moves, macroeconomic data, comments and company/geopolitical news from the first paragraph.)

US equity indexes slid after Brent crude oil futures crossed $100 a barrel and a surge in government bond yields wiped the shine off the Treasury Department's move to triple government debt buybacks to as much as $6 billion.

The Nasdaq Composite declined 0.6% to 26,260.2, the S&P 500 retreated 0.4% to 7,641.5, and the Dow Jones Industrial Average dropped 0.5% to 52,522.6 after midday Wednesday. All sectors except energy fell, with consumer discretionary, real estate, industrials and utilities among the steepest decliners.

The Iranian Revolutionary Guard Corps plans to declare a restricted zone stretching from Chabahar into parts of the Gulf of Oman and the Arabian Sea, Al Jazeera, a Middle Eastern broadcaster, reported. Any vessel entering this area will face sanctions, it said. The Strait of Hormuz accounted for about a fifth of global oil and gas flow daily before the Iran war.

Iran said on Wednesday it had attacked 10 ships near the Strait of Hormuz after the US sank five Iranian oil tankers, in the biggest declared wave of tit-for-tat attacks on shipping by both sides since the start of the six-month-old war, Reuters reported.

"Oil prices will be higher for longer with no end in sight for what remains Iran's strategy of managed irresolution through US midterms," Derek Holt, the head of capital market economics at Scotiabank, said in a note.

The front-month US West Texas Intermediate crude oil contract surged 2.9% to $95.68 per barrel, and global benchmark North Sea Brent soared 2.8% to $100.68 per barrel.

The Treasury Department plans to buy back up to $6 billion of government debt, CNBC reported. The move triples the normal buyback operation, following an announcement Aug. 19 from Treasury Secretary Scott Bessent that the department would at least double the normal amount for already-issued securities.

Most US Treasury yields rose, with the two-year up 2.5 basis points to 4.42%. The 10-year yield jumped 3.1 basis points to 4.84%, trading close to its highest since late 2023.

Treasury yields rose despite the increased buyback announcement, as some on Wall Street expect even bigger repurchases, according to CNBC.

Gold futures rose 0.6% to $4,464.00, and silver futures jumped 2.8% to $68.90.

In company news, Meta Platforms (META) launched a new personal artificial intelligence agent called Muse AI, which can send emails, book travel plans, take on goals, and continue working after users close the app. Shares advanced 6.2%, among the top gainers on the S&P 500 and the Nasdaq.

Casey's General Stores (CASY) fiscal Q1 same-store sales growth slowed and missed Wall Street estimates, taking the shine off earnings and revenue beats. Shares sank more than 15%, the steepest decliner on the S&P 500.

In economic news, Redbook US same-store sales surged 8.3% from a year earlier in the week ended Sept. 5, after a 9.6% year-over-year increase in the previous week.

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Update: US Equity Indexes Drop as Houthi Strikes on Saudi Arabia's Energy Infrastructure Lift Crude Oil

(Updates with index/price moves, macroeconomic data and company/geopolitical news from the first paragraph.)US equity indexes declined as Iran-backed Houthi attacks on Saudi Arabian energy facilities sent crude oil higher, fueling inflation concerns.The Dow Jones Industrial Average dropped 1.2% to 52,786.07, the Nasdaq Composite declined 0.3% to 26,421.41, and the S&P 500 retreated 0.6% to 7,673.52 on Tuesday. Energy and utilities were among the gainers. Healthcare and financials led decliners.Iran's Fars news agency reported an explosion in the southern Jask area of the Islamic Republic, after reports of earlier explosions heard on the country's Kharg Island, Al Jazeera, a Middle Eastern broadcaster, reported.This comes as Yemen's Tehran-backed Houthis attacked energy facilities and cities in US ally Saudi Arabia on Tuesday, wounding more than 70 people and underscoring the risk of the Iran conflict escalating into a wider regional war, Reuters reported.Saudi Arabia said the attacks stopped operations at several energy facilities in the kingdom's south, Bloomberg reported, while noting a pick-up in buying by China, the world's largest importer. The US struck three Iranian tankers on Saturday in response to attacks on two US Navy warships."As we ponder a prolonged conflict, our expectations increasingly shift to a slower recovery in Middle East oil supply," Peter Taylor, head of commodity strategy at Macquarie, said in a note. "In this environment, we would anticipate deficits persisting through [year-end 2026], with the market approximately balanced in 2027."The front-month US West Texas Intermediate crude oil contract jumped 2.8% to $94.05 per barrel, and global benchmark North Sea Brent advanced 2.2% to $99.11 per barrel.Most US Treasury yields rose, with the two-year up 1.7 basis points to 4.40%, amid concern that higher crude oil prices undermine the Federal Reserve's efforts to bring inflation back to its 2% target. The 10-year yield was steady at 4.79%.Gold futures dropped 1.7% to $4,403.4.In company news, Novartis (NVS) sank nearly 14% after the company said its phase 3 Harbor study evaluating delpacibart etedesiran in patients with myotonic dystrophy type 1 failed to meet its primary endpoint of video hand opening time. Amgen's (AMGN) experimental heart drug olpasiran may still show a meaningful reduction in major cardiovascular events, even after Novartis' competing drug failed in a large study, UBS Securities said in a note. Amgen shares slumped 10%, the worst performer on the S&P 500, the Nasdaq, and the Dow.Intel (INTC) is expected to raise personal computer central processing unit prices by another 10% in early October, Digitimes reported, citing supply chain sources. Intel shares jumped 9.1%, among the top gainers on the S&P 500 and the Nasdaq.Palantir Technologies (PLTR) and Nebius Group (NBIS) agreed on a strategic partnership that will give Palantir commercial customers access to Nebius' artificial intelligence-native compute infrastructure and cloud platform, the companies said Tuesday. Nebius shares surged 7.7%, among the biggest Nasdaq outperformers.In economic news, the National Federation of Independent Business' monthly sentiment index fell to 98.7 in August from 99.8 in July, with declines in six of the 10 components, particularly the economic outlook."Uncertainty remains elevated among small business owners as they face a mixed set of challenges with weakened sales, supply chain disruptions, and inflation pressures," said NFIB Chief Economist Bill Dunkelberg. "While expectations for the overall economy dimmed, Main Street owners remain largely positive about the health of their own businesses."

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Exchange-Traded Funds Mixed, US Equities Fall After Midday

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Dow Jones^EEM^EXI^FAS^FAZ^GLD^IBB^IGM^IGV^IPK^IVV^IWMNasdaq Composite^IYE^IYH^IYJ^IYK^IYW^PMR^QQQ^RTH^SOXXS&P 500^SPY^UNG^USO^VDC^VHT^VIS^XLE^XLF^XLI^XLK^XLP^XLV^XRT^XSD$BETH$BITO$EETH
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Update: US Equity Indexes Fall as Strikes on Saudi Arabian Energy Sites Send Crude Oil Higher

(Updates with index/price moves, comments and company/geopolitical news from the first paragraph.)US equity indexes declined as an Iran-backed militia group's attack on Saudi Arabian energy sites pushed crude oil prices higher.The Nasdaq Composite declined 0.2% to 26,455.1, the S&P 500 retreated 0.4% to 7,688.2, and the Dow Jones Industrial Average dropped 1.1% to 52,839.5 after midday Tuesday.Energy and utilities were among a trio of gainers intraday. Healthcare and financials led decliners.Yemen's Tehran-backed Houthis attacked energy facilities and cities in US ally Saudi Arabia on Tuesday, wounding more than 70 people and underscoring the risk of the Iran conflict escalating into a wider regional war, Reuters reported. Saudi Arabia said the attacks stopped operations at several energy facilities in the kingdom's south, Bloomberg reported, while noting a pick-up in buying by China, the world's largest importer.The front-month US West Texas Intermediate crude oil contract climbed 0.7% to $92.11 per barrel, and global benchmark North Sea Brent advanced 0.3% to $97.27 per barrel, off session highs of more than 1% each."As we ponder a prolonged conflict, our expectations increasingly shift to a slower recovery in Middle East oil supply," Peter Taylor, head of commodity strategy at Macquarie, said in a note. "In this environment, we would anticipate deficits persisting through [year-end 2026], with the market approximately balanced in 2027."US Treasury yields rose, with the two-year up 1.5 basis points to 4.39% and the 10-year higher by 1.4 basis points to 4.80%.Gold futures fell 1.1% to $4,428.1.In company news, Intel (INTC) is expected to raise personal computer central processing unit prices by another 10% in early October, Digitimes reported, citing supply chain sources. Intel shares jumped 9%, among the top gainers on the S&P 500 and the Nasdaq.Palantir Technologies (PLTR) and Nebius Group (NBIS) agreed on a strategic partnership that will give Palantir commercial customers access to Nebius' artificial intelligence-native compute infrastructure and cloud platform, the companies said Tuesday. Nebius surged 10%, among the biggest Nasdaq outperformers.Novartis (NVS) sank 13% after the company said its phase 3 Harbor study evaluating delpacibart etedesiran in patients with myotonic dystrophy type 1 failed to meet its primary endpoint of video hand opening time.Canadian tariffs announced after trade talks with the US collapsed last month took effect on Tuesday and range from 15% to 50%, impacting hundreds of US products, including dairy, agricultural equipment, paper, household appliances and electronics.

Dow JonesNasdaq CompositeS&P 500$INTC$NBIS$NVS$PLTR