Wall Street opens lower as oil rises and tensions grow between the United States and Iran

Wall Street opened in the red Tuesday as investors weighed higher oil prices, the war between the United States and Iran and worsening trade tensions with Canada.

Ten minutes after the New York market opened, the Dow Jones Industrial Average stood at 52,929 points, down 0.92%. The S&P 500 fell 0.42% to 7,686, while the Nasdaq dropped 0.49% to 26,378.

Markets were also awaiting upcoming U.S. inflation data, which could shape expectations for Federal Reserve monetary policy. Trade tensions with Canada intensified after Canadian retaliatory tariffs on about $20 billion worth of U.S. products took effect Tuesday.

Oil prices came under renewed pressure after Yemen’s Houthi rebels, who are allied with Iran, claimed attacks against Saudi Arabia, a U.S. ally. At 9 a.m. local time, October West Texas Intermediate futures had risen $1.17 from the previous close to $92.65 a barrel.

The increase in crude prices pushed U.S. Treasury yields higher amid concern that more expensive energy could fuel inflation. The 10-year yield held at 4.784%, while the 30-year yield fell 0.7 basis points to 5.239%.

Qualcomm provided a bright spot in the corporate sector, jumping more than 7% after announcing a collaboration with Amazon Web Services to develop AI infrastructure. The companies said the agreement would focus on AI inference systems and combine AWS infrastructure with Qualcomm’s low-power processors, semiconductor design and systems integration expertise. They did not disclose financial terms.

Elsewhere, gold fell 0.55% to $4,451 an ounce, while silver rose 0.5% to $67.08.