Dow falls 360 points after U.S.-Iran strikes; August gains hold

Dow falls 360 points after U.S.-Iran strikes; August gains hold

Mon, August 31, 2026 at 10:33 PM GMT+3 2 min read

U.S. stocks fell Monday after American forces struck Iranian rocket launchers for the first time in about a month, though all three major indexes remained on pace to end August with gains.

The Dow Jones Industrial Average fell 359 points, or 0.7%, with Goldman Sachs and Alphabet among the biggest drags on the index. The S&P 500 and the Nasdaq Composite each slipped around 0.4%.

U.S. Central Command confirmed to MS NOW that American forces struck two rocket launchers on Iran's Larak Island on Sunday. Iranian state media reported that Tehran responded by attacking U.S. bases in Jordan, according to CNBC. The Wall Street Journal reported that the strikes took place in the Strait of Hormuz, according to The Wall Street Journal.

Oil prices rose on the news. U.S. West Texas Intermediate crude advanced past $85 a barrel, a gain of more than 2%, with Brent crude futures topping $90 a barrel. Longer-dated Treasury yields also pushed higher Monday, compounding the headwinds facing stocks.

Despite the day's losses, Wall Street is on track to close August in positive territory. The Dow has gained more than 1% since the start of August, leaving it on course to notch a fifth consecutive monthly rise. The S&P 500 and Nasdaq were each on track to post their first monthly gains since May, with advances of roughly 2% and 3%, respectively. Earlier in August, both the S&P 500 and the Dow set record closing levels.

Technology stocks powered much of August's rally, with shares tied to artificial intelligence among the standout performers. The S&P 500 tech sector finished the month up nearly 6%, with Nvidia surging more than 9% and both Microsoft and Micron Technology posting gains of 10% and 15%, respectively.

August was nonetheless a rocky month. Concern about inflation drove Treasury yields to levels not seen in years, and Federal Reserve Chairman Kevin Warsh cautioned Friday that, while summer inflation readings were better than expected, they "do not tell me that underlying trends have meaningfully improved."

Investors are watching several events this week. Friday's jobs report, according to The Wall Street Journal, is forecast to show a gain of 50,000 positions in August, reversing a loss of 23,000 in July. Reports on manufacturing and services activity are also due this week, as are developments from the Group of 20 finance ministers gathering in Asheville, North Carolina.