U.S. equities closed lower on August 31 as surging crude oil prices and escalating geopolitical tensions between the U.S. and Iran weighed heavily on investor sentiment.
The Dow Jones Industrial Average (^DJI) fell 0.70% to close at 53,186, while the S&P 500 (^GSPC) lost 0.33% to finish at 7,686 for the session.
The Nasdaq Composite (^IXIC) fared relatively better, edging down just 0.12% to close at 26,371 as technology stocks showed some resilience amid the broader selloff.
Gold futures declined 0.64% to $4,466 as of the U.S. market close, while the 10-Year Treasury yield ticked up 0.04% to reach 4.76%.
Most sectors finished the day in negative territory, with energy and consumer defensive stocks among the few areas managing to post gains on the session.
Basic materials and industrials bore the brunt of the selling pressure, recording the biggest losses across the major sectors during Monday’s trading.
Military strikes between the U.S. and Iran sent WTI crude oil back above $90 a barrel, stoking fresh inflation concerns and prompting investors to pull back from riskier assets.
Strategy (MSTR) attracted notable attention during the session after announcing it had resumed its Bitcoin purchases, drawing interest from crypto-focused investors watching the stock closely.
Other digital asset-linked names also moved higher, with Circle Internet Group gaining on broader strength across the cryptocurrency market throughout the day.
Shares of HDFC Bank faced volatility after news broke that its chief executive officer would be stepping down and handing over leadership responsibilities to a successor.
Despite the rough close to the month, the S&P 500 (^GSPC) finished August in positive territory, posting a solid 2.6% gain driven largely by strong earnings results from major technology companies.
Investors are now bracing for potential headwinds in September, a month that has historically underperformed, with growing expectations that the Federal Reserve could raise interest rates again.
While short-term volatility can unsettle markets, analysts consistently point out that staying invested and maintaining a diversified portfolio remain proven strategies for long-term wealth building.
