US stocks mostly fall after renewed US-Iran clashes, while chip shares rise

Wall Street ended mostly lower on Aug. 31 after the United States and Iran exchanged attacks again, roughly a month after their previous confrontation. The renewed violence pushed international oil prices higher and revived fears that the conflict could add to inflationary pressure.

Investors also worried that an expansion of the fighting could disrupt shipping through the Strait of Hormuz. Energy shares rose as oil prices climbed, but the inflation concerns weighed on broader stock buying.

The rise in oil prices also sent long-term US Treasury yields higher. The 10-year yield increased by about four basis points to 4.76%, its highest level since January 2025.

The Dow Jones Industrial Average fell 374.09 points, or 0.70%, to 53,185.90. The S&P 500 lost 25.62 points, or 0.33%, to 7,686.14, while the Nasdaq declined 31.53 points, or 0.12%, to 26,370.89. The Philadelphia Semiconductor Index gained 65.39 points, or 0.57%, to 11,535.05.

The five largest technology companies all fell. Meta dropped 0.98%, Apple 0.89%, Alphabet 2.09%, Microsoft 1.22% and Amazon 2.50%. Semiconductor shares moved higher, with AMD up 1.10%, Broadcom up 0.42%, Nvidia up 1.48% and Qualcomm up 3.83%. TSMC’s ADR fell 0.53% to $415.32, while United Microelectronics’ ADR rose 0.45% to $19.88.