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US Equity Indexes Lower This Week as Trump Threatens Major Economic War on Iran

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*US equity indexes were lower this week after President Donald Trump warned of severe economic sanctions against Iran and any country that offers a lifeline to the Middle East nation.

* The S&P 500 hovered around 7,672.5 on Friday versus 7,785.76 a week ago. The Nasdaq Composite stood at about 26,159.7, compared with 26,729.16 a week earlier, and the Dow Jones Industrial Average was lower at 53,207.2, versus 53,732.41 at the end of last week.

* Trump warned of extreme economic actions against Iran and any country that supports or conducts business with the Middle East nation after the deadline to reach a permanent peace deal expired. Iran's Foreign Minister Seyed Abbas Araghchi dismissed Trump's warning in an X post, describing it as a diversion from America's challenges of "unprecedented debt & surging interest costs."

*Bond yields continued to rise despite the Treasury Department ramping up repurchases of long-dated government debt, and Secretary Scott Bessent stated that the repurchases could exceed $4 billion per operation, CNBC reported Thursday, citing an interview with the official.

*Most Federal Open Market Committee participants agreed to maintain the federal funds rate at 3.50% to 3.75%. While FOMC participants acknowledged that inflation remained elevated, most expected it to decline over the remainder of the year as the effects of tariffs and earlier energy price hikes fade. They also observed that economic activity continued to expand at a robust pace while labor market conditions appeared stable.

*President Donald Trump also paused tariffs on certain Canadian goods, according to a Truth Social post. He also said the Keystone XL Pipeline, which was canceled in 2021, may be revived. The tariff play comes ahead of negotiations for the US-Mexico-Canada Trade Agreement.

*The August flash reading of manufacturing conditions from S&P Global declined to 53.2 from 53.9 in July, compared with expectations for no change in a survey compiled by Bloomberg. The index for services conditions rose to a 20-month high reading of 56.8 in August from 54.6 in July, compared with expectations for a decrease to 54.

*US mortgage applications fell by 0.4% in the week ended Aug. 14, with an increase in refinancing activity offset by declining home purchase applications, according to the Mortgage Bankers Association.

*According to the Labor Department, US initial jobless claims declined to 206,000 in the week ended Aug. 15 from the upwardly revised 212,000 level in the week earlier, and lower than 210,000 expected in a survey of analysts compiled by Bloomberg.

*In company news, Moderna (MRNA) shares climbed by over 100% this week, and Merck (MRK) shares gained over 11% after the companies said a trial of intismeran autogene combined with Keytruda met the primary endpoint of recurrence-free survival and a key secondary endpoint of distant metastasis-free survival in patients with completely resected stage IIB-IV melanoma.

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US Equity Indexes Fall After Trump Warns of Severe Economic Actions Against Iran, Driving Up Oil Prices, Bond Yields

US equity indexes fell on Thursday as bond yields and oil prices surged after President Donald Trump warned of severe economic sanctions against Iran, and any country that offers a lifeline to the Middle-East nation.Iran's Foreign Minister Seyed Abbas Araghchi dismissed Trump's warning in an X post, calling it a diversion from America's challenges of "unprecedented debt & surging interest costs."Bond yields continued to rise despite Treasury Secretary Scott Bessent stating that the buyback of long-dated government debt, announced yesterday, could exceed $4 billion per operation, CNBC reported Thursday, citing an interview with the official.The Nasdaq Composite fell 1% to 26,067.1, and the S&P 500 declined 0.8% to 7,641.6. The Dow Jones Industrial Average shed 1.3% to 52,762.3. Energy and real estate sectors led the gainers, while consumer staples and health led the decliners.The yield on 30-year Treasuries rose 5.4 basis points to 5.248%, while the 10-year yield gained 4.9 basis points to 4.702%.Gold futures gained 0.9% to $4,587.4 per ounce, and silver futures rose 3.9% to $68.43.In economic news, the Conference Board's measure of leading indicators rose by 0.2% in July, a larger gain than the 0.1% increase expected in a survey compiled by Bloomberg, and following a 0.1% decrease in June.The Conference Board highlighted that economic growth is expected to be driven by investments in AI, while consumer spending could slump due to the higher cost of living.The Philadelphia Federal Reserve's monthly manufacturing index rose to 47.4 in August, compared with 41.4 in July and an anticipated decrease to 24.1 according to a survey compiled by Bloomberg.According to the Labor Department, US initial jobless claims declined to 206,000 in the week ended Aug. 15 from the upwardly revised 212,000 level in the week earlier, and lower than 210,000 expected in a survey of analysts compiled by Bloomberg.US natural gas stocks rose by 16 billion cubic feet in the week ended Aug. 14, higher than the 15 billion gain expected in a survey compiled by Bloomberg and following an increase of 36 billion cubic feet in the week prior.The US West Texas Intermediate crude oil contract rose 2.7% to $88.15 per barrel.In company news, SpaceX (SPCX) shares fell 4% on Thursday after around 319 million early-investor shares of the company became eligible to trade today. The company also approached Cognition AI for a potential acquisition, but there are currently no active deal talks between them, Bloomberg reported late Wednesday, citing people familiar with the matter.Walmart (WMT) shares fell 9.1% on Thursday after its fiscal 2027 adjusted EPS guidance missed analyst expectations. The company reported fiscal Q2 adjusted earnings of $0.81 per share, up from $0.68 a year earlier and above the FactSet estimate of $0.74. Revenue was $187.94 billion, up from $177.40 billion a year ago and above the FactSet estimate of $186.62 billion. For fiscal 2027, Walmart expects adjusted EPS of $2.80 to $2.87, up from $2.75 to $2.85 earlier, but below the FactSet estimate of $2.90.Moderna (MRNA) shares fell 23.5% following a 177% jump at the close of the previous trading session. The drugmaker and Merck (MRK) announced positive topline results from a late-stage trial of an experimental skin cancer treatment on Wednesday.

Dow JonesNasdaq CompositeS&P 500$MRK$MRNA$SPCX$WMT
Asia Markets

US Equity Indexes Fall as Oil Prices Rise After Trump's 'Economic D-Day' Warning to Iran

US equity indexes fell after midday trading on Thursday as bond yields and oil prices surged after President Donald Trump threatened the "most crushing economic operation" on Iran, while also warning of consequences for countries that support or conduct business with Iran.The bond yield reversal comes a day after the US Treasury decided to boost repurchases of long-dated government debt to $4 billion per operation from September. Treasury Secretary Scott Bessent said the buyback program could exceed $4 billion, and US plans to mount economic pressure on Iran will likely negate the need for further military action, CNBC reported Thursday, citing an interview with the official.The Nasdaq Composite fell 0.9% to 26,093.6, the S&P 500 declined 0.5% to 7,667.7, and the Dow Jones Industrial Average shed 0.9% to 52,955.2. The energy and real estate sectors led the gainers, while consumer discretionary and consumer staples led the decliners.The yield on 30-year Treasuries rose 5.4 basis points to 5.248%, while the 10-year yield gained 4.9 basis points to 4.702%.Gold futures gained 0.4% to $4,565.2 per ounce, and silver futures rose 3.6% to $68.24.In economic news, the Conference Board's measure of leading indicators rose by 0.2% in July, a larger gain than the 0.1% increase expected in a survey compiled by Bloomberg, and following a 0.1% decrease in June.The Conference Board highlighted that economic growth is likely to be driven by investments in AI, while consumer spending is forecast to slow down due to the higher living costs.The Philadelphia Federal Reserve's monthly manufacturing index rose to 47.4 in August, compared with 41.4 in July and an anticipated decrease to a 24.1 print in a survey compiled by Bloomberg.According to the Labor Department, US initial jobless claims fell to 206,000 in the week ended Aug. 15 from an upwardly revised 212,000 in the week earlier, and lower than the 210,000 expected in a survey of analysts compiled by Bloomberg.US natural gas stocks rose by 16 billion cubic feet in the week ended Aug. 14, higher than the 15 billion gain expected in a survey compiled by Bloomberg and following an increase of 36 billion cubic feet in the week prior.The US West Texas Intermediate crude oil contract rose 1.9% to $87.52 per barrel.In company news, SpaceX (SPCX) approached Cognition AI about a potential acquisition, Bloomberg reported Wednesday, citing people familiar with the matter. There are currently no active deal talks between SpaceX and the AI coding startup, but they continue to discuss a potential collaboration, per the report. SpaceX shares were down 5.9%.Walmart (WMT) shares fell 8.8% on Thursday after its fiscal 2027 adjusted EPS guidance fell short of analysts' expectations. The company reported fiscal Q2 adjusted earnings of $0.81 per share, up from $0.68 a year earlier and above the FactSet estimate of $0.74. Revenue was $187.94 billion, up from $177.40 billion a year ago and above the FactSet estimate of $186.62 billion. For fiscal 2027, Walmart expects adjusted EPS of $2.80 to $2.87, up from $2.75 to $2.85 earlier, but below the FactSet estimate of $2.90.

Dow JonesNasdaq CompositeS&P 500$SPCX$WMT
Asia Markets

Exchange-Traded Funds Fall as US Equities Decline After Midday

Broad Market IndicatorsBroad-market exchange-traded funds IWM and IVV were lower. Actively traded Invesco QQQ Trust (QQQ) fell 0.5%.US equity indexes were lower after midday Thursday as bond yields and oil prices rose after President Donald Trump threatened economic warfare on Iran and its trade partners.EnergyIShares US Energy ETF (IYE) and the State Street Energy Select Sector SPDR (XLE) each rose about 0.7%.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) eased slightly; iShares US Technology ETF (IYW) and iShares Expanded Tech Sector ETF (IGM) also declined.The State Street SPDR S&P Semiconductor (XSD) shed 1.6%, while iShares Semiconductor (SOXX) added 0.2%.FinancialThe State Street Financial Select Sector SPDR (XLF) eased 0.2%. Direxion Daily Financial Bull 3X Shares (FAS) declined 0.7%, and its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), advanced 0.8%.CommoditiesCrude oil rose 2.4%, and the United States Oil Fund (USO) added 2.4%. Natural gas slipped 3.2%, and the United States Natural Gas Fund (UNG) was down 1.6%.Gold on Comex rose 0.4%, and the State Street SPDR Gold Shares (GLD) was down 0.1%. Silver gained 3.7%, and iShares Silver Trust (SLV) was up 2.7%.ConsumerThe State Street Consumer Staples Select Sector SPDR (XLP) was down 0.8%. The Vanguard Consumer Staples ETF (VDC) fell 1.8%, while iShares Dow Jones US Consumer Goods (IYK) added 0.5%.The State Street Consumer Discretionary Select Sector SPDR (XLY) was down 1.4%. VanEck Retail ETF (RTH) fell 2.1%, and the State Street SPDR S&P Retail (XRT) shed 2.1%.HealthcareThe State Street Health Care Select Sector SPDR (XLV) shed 0.8%. iShares US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were lower as well. IShares Biotechnology ETF (IBB) fell 2.4%.IndustrialThe State Street Industrial Select Sector SPDR (XLI) lost 0.8%. Vanguard Industrials Index Fund (VIS) and iShares US Industrials (IYJ) were also lower.CryptocurrencyIn midday activity, bitcoin (BTC-USD) added 5.3%. Among cryptocurrency ETFs, ProShares Bitcoin ETF (BITO) gained 6.3%, ProShares Ether ETF (EETH) was up 11.6%, and ProShares Bitcoin & Ether Market Cap Weight ETF (BETH) climbed 6.9%.

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