The Dow Jones Industrial Average (^DJI -0.70%) fell 0.70% to 53,186, the S&P 500 (^GSPC -0.33%) lost 0.33% to 7,686, and the Nasdaq Composite (^IXIC -0.12%) edged down 0.12% to 26,371 as surging oil prices and heightened geopolitical instability dampened risk appetite.
Today’s Change
(-0.33%) -25.62
Index Level
7,686.14
Key Data Points
Day’s Range
7,665.06 – 7,697.52
52wk Range
6,316.91 – 7,816.70
Gold futures fell 0.64% to $4,466 as of U.S. market close, and the 10-Year Treasury yield rose 0.04% to 4.76%. Most sectors fell, with energy and consumer defensive stocks among the few gainers. Basic materials and industrials saw the biggest losses.
Today’s biggest moves
Energy-driven inflation fears weighed on the market today, though Strategy attracted attention after announcing it had resumed its Bitcoin purchases. Other crypto stocks, such as Circle Internet Group, gained on broader digital asset strength. Shares in HDFC Bank, one of India’s largest banks, faced volatility on news that its chief executive officer would hand over the reins.
What this means for investors
In a story that’s becoming familiar to investors, crude oil prices rose today, and equities retreated as tensions between the U.S. and Iran escalated again. Military strikes between the two countries sent WTI crude oil back above $90 a barrel and heightened inflation concerns.
Even so, the S&P 500 finished August in the green with a 2.6% gain as strong earnings, particularly from big tech, helped boost major U.S. indexes. Investors are braced for possible declines in September, as expectations grow that the Federal Reserve will raise interest rates in a month that has historically seen stocks underperform.
Sure, there are reasons for investors to be cautious. Even so, it is almost impossible to predict short-term fluctuations, and in the long run, staying invested and maintaining a diversified portfolio are proven ways to build wealth.
Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool recommends HDFC Bank. The Motley Fool has a disclosure policy.
