Wall Street Opens Lower as Oil Surges After Trump Rejects Iran Peace Proposal
What Happened
US markets opened lower after Donald Trump rejected an Iranian peace proposal, triggering a sharp rise in crude oil prices and reigniting inflation concerns. Brent crude climbed toward $107-$108 per barrel, while Treasury yields moved higher, increasing worries that the Federal Reserve may need to keep monetary policy tighter for longer. At the opening bell, the Dow Jones fell about 180 points (-0.35%) to 51,648, the S&P 500 slipped 0.28% to 7,722, and the Nasdaq Composite declined 0.49% to 26,936. Technology shares received some support from Nvidia, which rose after announcing a $150 billion share buyback, the largest in its history.
Key Takeaways
Investors remain focused on geopolitical tensions and energy prices, as sustained gains in crude could fuel inflation pressures, push bond yields higher and weigh on equity markets.