Wall Street in the Red Amid Iran Tensions: Who Still Managed to Rise?
US President Donald Trump criticized the massive profits of Exxon Mobil and Chevron as oil prices surged due to Middle East tensions, while Wall Street indices ended the day with losses.
Stock markets in the United States ended the trading day with a negative trend, as investors reacted to the surge in oil prices and the rise in government bond yields.
The Dow Jones index broke a six-day winning streak, weakening by 0.8% due to declines in Boeing, Salesforce, and UnitedHealth shares. The S&P 500 retreated by 0.2%, while the Nasdaq saw a slight decline, primarily due to weakness in chip and memory stocks. Sandisk and Western Digital published positive financial reports, but the results failed to meet high investor expectations.
Of the 11 sectors in the S&P 500, only two ended the day with gains. The energy sector led with a rise of over 1%, alongside a slight increase in the communications sector. Exxon Mobil and Chevron shares stood out positively against the backdrop of rising oil prices. Earlier this week, US President Donald Trump addressed the massive profits of these two energy giants, stating they are "making too much money" due to oil price hikes resulting from Middle East tensions.
Developments in the Strait of Hormuz remain central. Uncertainty regarding the shipping route and regional escalation pushed Brent crude oil prices above 82 dollars per barrel, an increase of about 4%.
According to a draft plan published by Iran's state news agency, a series of restrictions on vessel passage through the strait is being considered. Proposals include prohibiting American and Israeli ships from using the passage and requiring compensation from countries deemed to have acted against Iran. Additionally, a 20% fine on cargo value is proposed for ships violating the new rules.
The rise in oil prices impacted the bond market, with 10-year US Treasury yields rising to about 4.67%, while 30-year yields reached approximately 5.21%.
Meanwhile, voices within the Federal Reserve are calling for continued monetary tightening to combat inflation. Wale Hartman of BMO Capital Markets noted that recent data points to a strong labor market, reinforcing the view that inflation will be the central consideration for the September interest rate decision.
Investors are now awaiting the July employment report. Market forecasts suggest an addition of about 80,000 jobs, following a disappointing 57,000 in June.
In the corporate arena, Alphabet is considering raising up to 25 billion dollars through a bond issuance to test investor appetite for tech debt. In the UK, Apollo Global Management reached an agreement to acquire EasyJet for approximately 5.7 billion pounds.
SpaceX stock attracted attention as early investors were allowed to sell their holdings for the first time since the IPO. Despite fears of selling pressure, the stock recovered after the opening bell.
Among Israeli companies on Wall Street, Monday clarified to employees that the salary update vote for co-CEOs Roy Mann and Eran Zinman is unrelated to the recent layoff of 620 employees. Playtika stock recorded a sharp decline despite turning a profit in the second quarter of 2026. Amdocs stood out with gains, reporting a profit of 1.84 dollars per share, in line with analyst expectations.
