NEW YORK — U.S. stocks fell as a surge in oil prices, driven by rising military tensions between Washington and Tehran, weighed on the market.
The Dow Jones Industrial Average closed at 52,215.16 on the 23rd, down 652.82 points, or 1.23%, from the previous session. The Standard & Poor's 500 fell 39.75 points, or 0.52%, to 7,623.68, while the Nasdaq Composite dropped 53.52 points, or 0.21%, to 25,955.34.
Among the largest companies by market value, Nvidia lost 0.59%, Apple slipped 0.14%, Amazon fell 0.95%, Google parent Alphabet declined 1.24%, Facebook parent Meta dropped 0.96%, Broadcom shed 0.48% and Tesla fell 0.63%. Microsoft rose 0.66%, TSMC gained 1.49%, SpaceX added 1.89%, SK hynix jumped 4.05%, Micron rose 2.46% and AMD gained 1.74%. The Philadelphia Semiconductor Index also climbed 0.44%. Apple, seen by investors as lagging in artificial intelligence, briefly overtook Nvidia during the session to become the world's most valuable company, its first time at the top in three months since July 30 of this year.
Oil prices surged on concern that the conflict between the United States and Iran could intensify again after the U.S. midterm elections, pressuring equities. Brent crude for December delivery settled at $116.72 a barrel on the ICE Futures Europe exchange in London, up $3.55, or 3.14%, from the previous session and the highest level in six months since April. It briefly traded above $117 a barrel during the session. West Texas Intermediate for December delivery on the New York Mercantile Exchange settled at $103.27 a barrel, up $3.80, or 3.82%.
Speaking in Fort Myers, Florida, President Donald Trump said the United States could carry out another limited military operation against Iran, invoking the code name used when the United States and Israel launched a surprise attack on Iran on Feb. 28, or that Tehran would reach an agreement. He said that if Iran were smart it would come to the table for serious negotiations, and added that he would deal with Cuba on the way back from Iran. He said warships would pass by Cuba and that he would anchor one of them about 50 yards, or roughly 46 meters, off the coast. Trump also said Cuba would surrender and that he would then send Secretary of State Marco Rubio to finish the job.
The New York Times reported on the 21st that the United States and Israel had drawn up plans to strike Iran again after the midterm elections. Potential targets under consideration include Iran's energy infrastructure, nuclear facilities at a site known as Pickaxe Mountain, and missile and drone forces, according to the report. Some observers have suggested a renewed U.S. strike on Iran could come as early as this weekend.
Israeli Prime Minister Benjamin Netanyahu, speaking the previous day at a commissioning ceremony for Israeli military officers, said Iranian Supreme Leader Ayatollah Mojtaba Khamenei had once again decided to develop a bomb of death, and that the only way to remove such a threat once and for all was to topple the Iranian government.
Iran has also stepped up attacks on oil tankers passing through the Strait of Hormuz. Yemen's Iran-aligned Houthi rebels have expanded strikes on Saudi Arabia, prompting the United States to withdraw some of its diplomats and their families from the country.
By sector, established telecom stocks fell sharply after a report that SpaceX is in private talks to lease 80,000 mobile network tower sites. AT&T dropped 7.96%, while T-Mobile and Verizon fell 7.71% and 1.19%, respectively.
