Today’s Market Recap: Nasdaq Drops Over 1%, Dell Surges 8% After Hours, WTI Crude Tops $90 as US-Iran Conflict Escalates

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TradingKey - On September 1 Eastern Time, all three major U.S. stock indices closed lower, with the Nasdaq dropping over 1%. The U.S. launched another airstrike against Iran, further escalating the U.S.-Iran military conflict, which drove international oil prices sharply higher and pushed U.S. Treasury yields up in tandem. Higher energy prices further reinforced market concerns over an inflation rebound; coupled with earlier hawkish signals from Federal Reserve Chair Warsh, investors continued to raise their bets on a September rate hike, leaving tech and semiconductor stocks as the primary sector under pressure.

At the close, the Dow Jones Industrial Average fell 0.79% to 52,772.27 points; the S&P 500 Index dropped 0.71% to 7,631.47 points; and the Nasdaq Composite Index fell 1.03% to 26,099.77 points.

In terms of sectors and individual stocks, tech and semiconductor stocks were broadly under pressure. Nvidia (NVDA) fell 1.51%, AMD (AMD) dropped 2.36%, Intel (INTC) declined 0.60%, and Broadcom (AVGO) slipped 0.18%. The Philadelphia Semiconductor Index tumbled 2.14% overall, indicating that rising oil prices and climbing U.S. Treasury yields put clear pressure on high-valuation tech stocks.

After-hours trading saw a new AI catalyst. Dell Technologies (DELL) rose over 8% after hours. The company's second-quarter revenue surged 58% year-over-year to a record $47 billion, exceeding market expectations of $44.92 billion; adjusted earnings per share came in at $7.04, also significantly beating the expected $4.91. Driven by strong demand for AI servers, Dell raised its full-year revenue guidance sharply from $167 billion to $192 billion.

In commodities, crude oil was the top-performing major asset of the day. Brent crude (UKOIL) gained 4.98% to close at $95.20, reaching its highest settlement in five weeks; WTI crude (USOIL) jumped 5.09% to close at $90.69. Following a new round of U.S. airstrikes against Iran, market fears over prolonged blockades of the Strait of Hormuz and Middle East energy supply disruptions escalated significantly.

In precious metals, gold (XAUUSD) continued its sharp pullback. Spot gold fell 2.72% to around $4,328, hitting a two-week low. Although the escalation of the U.S.-Iran conflict typically benefits safe-haven demand, rising global bond yields and a strengthening U.S. dollar proved to be the more dominant drivers. After dropping below its 200-day moving average earlier, gold prices triggered further technical selling.

Market News

US launches fresh airstrikes on Iranian targets, further escalating US-Iran conflict. US Central Command stated that US forces launched a new round of strikes against targets linked to Iran's Islamic Revolutionary Guard Corps (IRGC), after Iran was accused of attempting to attack commercial vessels in the Strait of Hormuz and US troops stationed in the Middle East. US President Trump called the military action "justified" and warned that if Iran retaliates again, the US will launch larger-scale strikes. As military actions between the two sides escalate again, market concerns over a further expansion of the conflict have risen significantly.

Strait of Hormuz shipping remains depressed; crude oil prices jump over $4 in a single day. Kpler data showed that only about five commodity vessels passed through the Strait of Hormuz on Monday, significantly below the average of about 14 vessels over the past 10 days, with no liquid tankers passing through that day. Iran also warned it could block crude exports from the Gulf region, and supply disruption risks pushed Brent crude up to $94.65, while WTI broke back above $90.

Probability of a Fed rate hike in September approaches 70%; US Treasury yields continue to rise. The surge in oil prices further exacerbated market concerns over inflation, which, combined with Warsh's previous hawkish remarks at the Jackson Hole conference, led market pricing to show that the probability of a 25-basis-point rate hike by the Fed in September has risen to approximately 68%. The US 10-year Treasury yield continued to remain near its high levels since early 2025, with interest rates once again becoming a key factor weighing on US stock valuations.

Dell raises full-year revenue guidance by $25 billion; AI server orders top $130 billion. Dell reported second-quarter revenue of $47 billion, up 58% year-over-year to a record high. The company stated that AI server orders over the past 12 months have exceeded $130 billion, and it raised its fiscal 2027 revenue forecast for AI-optimized servers from $60 billion to $74 billion. Driven by strong AI server demand, Dell significantly raised its full-year revenue guidance to $192 billion, sending its stock up about 7% in after-hours trading at one point.

SB Energy files for US IPO; Nvidia plans $1.5 billion investment. SB Energy, a SoftBank-backed data center and energy infrastructure company, has filed for a US IPO and plans to list on Nasdaq and Nasdaq Texas under the ticker symbol SBE. Filings show that Nvidia committed to a $1.5 billion private placement at the IPO price, while OpenAI has secured warrants valued at approximately $5.5 billion. SB Energy currently holds a project pipeline of about $439 billion, reflecting that investments in AI data centers, power, and energy infrastructure continue to expand rapidly.

US pushes G20 to reduce AI regulation as global competition over AI rules heats up. At a G20 tech meeting, the US government urged member states to avoid introducing excessive new regulatory measures targeting artificial intelligence and proposed the "Carolina Principles," aiming to drive AI innovation by easing regulatory restrictions and boosting investment in basic research. OpenAI, Anthropic, Nvidia, and other US tech companies could be major beneficiaries of these policies, as competition in the AI industry extends beyond chips and models to global regulatory rules.

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