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Update: US Equity Indexes Rise as Treasury Yields Slip, Crude Oil Edges Up in Final Leg of Trading

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(Updates with index/price moves and geopolitical news from the first paragraph.)

US equity indexes rose while government bond yields edged lower and crude oil climbed amid concern that hostilities between Washington and Tehran are taking a turn for the worse.

The Nasdaq Composite rose 0.3% to 26,188.5, the S&P 500 climbed 0.4% to 7,664.6, and the Dow Jones Industrial Average advanced 0.5% to 53,015.1.

All sectors, except industrials and real estate, rose. Materials and communication services topped the gainers.

The additional strikes Tuesday on Iran led to Tehran attacking Jordan, Bahrain and Kuwait even though US President Donald Trump had warned that Iran would be "hit much harder" if it retaliated to the first strikes in over a month. "They will be hit again at a much harder and higher level, but it will not be the biggest attack of them all, that is waiting in the wings and, when it is over, there will be very little left of the Islamic Republic of Iran!" Trump posted on Truth Social on Tuesday.

The Iran Revolutionary Guards Corps said two oil tankers exploded after hitting a mine and are now on fire, Al Jazeera, a Middle Eastern broadcaster, reported Wednesday.

The front-month US West Texas Intermediate crude oil contract rose 0.5% to $90.70 per barrel, and global benchmark North Sea Brent climbed 0.7% to $95.29 per barrel. Both crude types were down by more than 0.5% earlier in the session.

Most US Treasury yields slipped, albeit moderately. The 10-year yield was unchanged at 4.8%. The two-year yield slipped less than one basis point to 4.39%.

Meanwhile, ADP's monthly measure of private payrolls showed a 38,000 increase in August, below a 47,000 gain expected in a Bloomberg-compiled survey, following a 46,000 increase in July. Service-providing jobs climbed 48,000, with education and health services jobs up 45,000, while manufacturing sector jobs contracted 17,000.

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(Updates with index/price moves and geopolitical news from the first paragraph.)US equity indexes fell amid soaring crude oil prices and a surge in the benchmark government bond yield to the highest in about 18 months as Iran vowed to inflict severe damage following Washington's strikes on targets in the Islamic Republic on Tuesday afternoon.The Nasdaq Composite fell 1.1% to 26,095.2, the S&P 500 retreated 0.78% to 7,628.3, and the Dow Jones Industrial Average slid 0.8% to 52,761.5 ahead of the market close.US forces began striking Islamic Revolutionary Guard Corps targets in Iran, the US Central Command said in a message on X, formerly Twitter. The strikes follow recent attempted attacks by the IRGC against commercial shipping in the Strait of Hormuz and against American service members deployed to the region. These new hostilities come as the duo traded attacks overnight into Monday, the first exchange after more than a month.Iranian media reported explosions in Bandar Abbas, Qeshm Island, Konarak, Chabahar, Jask, Sirik and Lavan, Al Jazeera, a Middle Eastern broadcaster, reported. Iran's army and the Iran Revolutionary Guards Corps promised the US would regret and face "severe punishment" for the aggression, the news report said.The front-month US West Texas Intermediate crude oil contract surged 5.6% to $90.57 per barrel, and global benchmark North Sea Brent soared 5.1% to $95.14 per barrel.Most US Treasury yields rose. The 10-year yield jumped 3.8 basis points to 4.8%, the highest since January 2025, and the two-year advanced 4.8 basis points to 4.4%.In economic news, US job openings rose to 7.271 million in July, according to the Bureau of Labor Statistics, below the 7.313 million openings expected in a survey compiled by Bloomberg, but up from the 7.182 million openings reported in June. The July level represents 4.4% of total employment, up from 4.3% in June and 4.3% a year earlier.The probability of the Federal Reserve raising its target rate by 25 basis points to 3.75%-4.0% in September surged to 66% after midday Tuesday from 40% a day ago, according to the CME FedWatch tool. The likelihood of another increase of the same magnitude in October is almost a fifth, putting into perspective a 10% chance of the rates remaining at the current level by December.

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