On Aug. 24 (local time), the Dow Jones Industrial Average closed at 53,417.16, up 140.15 points (0.26%) from the previous session. The Standard & Poor's 500 and the Nasdaq Composite closed at 7,652.86 and 25,980.19, down 21.51 points (0.28%) and 200.26 points (0.77%), respectively.
Among the top tech stocks by market capitalization, Nvidia fell 2.91%, while SpaceX (-1.44%), Broadcom (-2.63%), and Tesla (-3.83%) also declined. Apple (0.32%), Microsoft (0.84%), Amazon (1.33%), Google parent Alphabet (0.94%), and Facebook parent Meta (1.66%) held up despite the down market.
New York stocks showed diverging moves throughout the session by index, as the U.S. Treasury Department's announcement of economic sanctions on Iran and the effect of falling Treasury yields intertwined. U.S. Treasury Secretary Scott Bessent held a press conference and said, "We are launching 'Operation Economic Outcast' to cut off every option the Iranian regime could choose." The core of the new sanctions package is to impose sanctions on other countries that do business with Iran. Specifically, it will place on the sanctions list countries that trade with Iran in five sectors: digital assets, technology, gold, aviation, and shipping. The Treasury also newly designated more than 60 entities, individuals, and vessels worldwide that help the Iranian regime acquire nuclear and missile technology, conduct cyber operations, and generate oil revenue. In response, Iranian Minister of Economic Affairs and Finance Seyyed Ali Madanizadeh countered in an interview with state broadcaster, "We planned long ago to counter U.S. sanctions and drew up a two-year economic plan."
U.S. Treasury yields fell for the first time in a while on a CNBC report that the Treasury could even mobilize its general account (TGA) for buybacks. The U.S. 10-year Treasury yield stood at 4.704%, down 0.03 percentage point from the previous day, while the 30-year yield was 5.234%, down 0.04 percentage point. The spot price of gold rose to the $4,680 range per troy ounce during the session, marking its highest level in three months since May 14.
Despite the stabilization in bond yields, it was caution over Nvidia's earnings that put downward pressure on stocks. Nvidia and Broadcom fell 2.91% and 2.63%, respectively, while major semiconductor-related stocks such as SK hynix (-4.92%), Micron (-5.83%), Intel (-3.12%), and SanDisk (-6.45%) were mostly weak. The Philadelphia Semiconductor Index also fell 2.70%. Nvidia declined for the seventh straight session, its longest losing streak since September 2022. Nvidia is scheduled to release its fiscal 2027 second-quarter (May–July) results after the market close on Aug. 26.
International oil prices fell more than 2% despite the large-scale sanctions on Iran. On the ICE Futures exchange in London, Brent crude futures for October delivery closed at $92.17 a barrel, down $2.22 (2.35%) from the previous session. On the New York Mercantile Exchange, U.S. West Texas Intermediate (WTI) futures for October delivery also closed at $85.01 a barrel, down $2.05 (2.35%). It was the first decline in international oil prices in seven sessions since Aug. 13. Market participants are understood to have used the U.S. Treasury's announcement of sanctions on Iran as an opportunity to take profits.
