Dow falls as US strikes Iran, rate-hike bets jump

Wall Street closed lower on Monday, but the major indexes still wrapped up a winning August as investors look ahead to a busy September.

The Dow Jones fell 374 points, or 0.7%, to 53,186, while the S&P 500 slipped 26 points, or 0.3%, to 7,686. The Nasdaq edged down 32 points, or 0.1%, to 26,371.

Despite Monday's pullback, stocks finished the month firmly in the green. The S&P 500 gained more than 2.5% in August, the Nasdaq climbed more than 3%, and the Dow advanced 1.3%.

Now, investors are turning their attention to the US jobs market, with the Labor Department's closely watched monthly employment report due Friday. The data could help shape expectations for the Federal Reserve's next move on interest rates.

Before then, earnings will provide another source of market action. Palo Alto Networks, Dell Technologies and MongoDB are all scheduled to report results tomorrow afternoon, putting the spotlight back on technology spending and the broader AI trade.

With August now in the books, Wall Street heads into September with plenty for investors to digest.

BioVie Inc (NASDAQ:BIVI, NASDAQ:BIVIW) has completed the final on-treatment visit in its Phase 2 ADDRESS-LC trial evaluating bezisterim for neurological symptoms associated with Long COVID, with topline results expected by the end of September 2026.

Alvopetro Energy Ltd (TSX-V:ALV, OTC:ALVOF, FRA:A6Y0) has completed drilling the 183-H2 well at its wholly owned Murucututu natural gas field in Brazil, reaching a total measured depth of 3,176.5 metres.

TNR Gold Corp (TSX-V:TNR, FRA:TNW, OTC:TRRXF) has launched its 2026 exploration program at the Shotgun Gold Project in southwestern Alaska, targeting the Shotgun and Winchester prospects based on historical geochemical and geophysical anomalies.

Arizona Gold & Silver Inc (TSX-V:AZS, OTCQB:AZASF, FRA:A9J0) has appointed mining industry veteran Yale Simpson as an independent director, expanding his previous role as an informal company advisor.

Nextech3D.AI (CSE:NTAR, OTCQX:NEXCF, FRA:1SS) reported a 101% year-over-year increase in first-quarter revenue to C$660,159, driven by growth in its event technology platform and expanded services business.

Royal Road Minerals Ltd (TSX-V:RYR, OTC:RRDMF, FRA:RLU) plans to raise up to C$1 million to expand its drilling programs in Colombia after strong investor demand prompted an existing institutional shareholder to participate on the same terms as its recent brokered financing.

PG&E Corp (NYSE:PCG) shares fell more than 19% after California lawmakers advanced wildfire legislation that omitted liability protections sought by utility investors, renewing concerns about the company's exposure to future wildfire claims.

Aon PLC (NYSE:AON) has agreed to acquire insurance brokerage USI from KKR for $17 billion including debt, expanding its presence in the middle-market business while adding a company that generates about $3 billion in annual revenue.

BioVie Inc (NASDAQ:BIVI, NASDAQ:BIVIW) said it has completed the final on-treatment visit in its Phase 2 ADDRESS-LC trial evaluating bezisterim for neurological symptoms associated with Long COVID, with topline results expected by the end of September 2026.

Alvopetro Energy Ltd (TSX-V:ALV, OTC:ALVOF, FRA:A6Y0) has completed drilling the 183-H2 well at its wholly owned Murucututu natural gas field in Brazil, reaching a total measured depth of 3,176.5 metres within an area assigned prospective resources by independent evaluator GLJ.

TNR Gold Corp (TSX-V:TNR, FRA:TNW, OTC:TRRXF) has launched its 2026 exploration program at the Shotgun Gold Project in southwestern Alaska, targeting the Shotgun and Winchester prospects using geochemical and geophysical targets identified through earlier surveys.

Eli Lilly and Co (NYSE:LLY) said it will acquire privately held Merida Biosciences for up to $2.88 billion in cash as it steps up dealmaking to expand its treatments for immune-related and allergic diseases beyond its leading obesity and diabetes franchises.

Warsh's speech last Friday sent a clear message to markets, according to XTB's Kathleen Brooks: inflation remains too high and is firmly on his radar, while he has little appetite for forward guidance from the Fed.

Brooks noted that Warsh painted a relatively upbeat picture of the US economy, pointing to solid growth and significant optimism around AI's potential to lift productivity.

Importantly, Warsh does not believe financial conditions are overly restrictive, suggesting there is still room for the economy to run without the Fed rushing to ease policy.

"Warsh clearly sees inflation as being too high, and economic growth in his view is solid," Brooks noted.

"Due to this, the Fed has room to hold rates higher for longer or even raise rates as early as the September meeting."

Wall Street heads into September with investors facing a busy week of economic data, technology earnings and a closely watched Tesla event, with Friday's August jobs report likely to be the biggest market catalyst.

The employment report is expected to show the US economy added 58,000 jobs in August, with the unemployment rate holding at 4.1% and average hourly earnings rising 0.3% month over month, although forecasts vary amongst major banks.

JOLTS data arrive Tuesday, followed by ADP private payrolls on Wednesday. Manufacturing ISM is also due Tuesday, while services ISM comes Thursday, offering a more forward-looking look at business activity and hiring.

On the earnings front, Dell Technologies reports Tuesday, Snowflake and Hewlett Packard Enterprise follow Wednesday, while Palo Alto Networks, MongoDB, Zscaler and Ciena are among Thursday's reports.

Wall Street opened lower on Monday as overnight military developments in the Middle East rattled markets and investors digested a more hawkish tone on inflation from Federal Reserve Chair Kevin Warsh at the Jackson Hole economic symposium.

The Dow Jones Industrial Average fell 294 points, or 0.6%, to 53,266, while the S&P 500 dropped 32 points, or 0.4%, to 7,680. The Nasdaq Composite was down 102 points, or 0.4%, at 26,300.

The latest geopolitical flare-up came after the US struck Iranian rocket launchers, while Iran said it fired missiles at a US airbase in Jordan. The developments disrupted the relative calm that had settled over markets and added a fresh layer of uncertainty for investors.

At the same time, traders are reassessing the outlook for interest rates after Warsh took a firm stance on inflation in his Jackson Hole speech, prompting markets to increase bets on higher rates and putting pressure on equities.

Energy markets are also in focus after President Donald Trump said late Friday that the US had struck a deal to control Venezuelan oil supplies. Under the reported agreement, the US would take a 35% passive stake in a Venezuelan oil company and secure preferential rights to purchase 20% of its production at cost.

On the corporate side, PG&E shares fell 10% after California legislators rejected a bill that would have limited utilities' liability for wildfire damage.

M&A activity is providing another source of headlines. Aon agreed to acquire insurance brokerage USI for $17 billion from private-equity group KKR, while Apollo agreed to sell data-center cooling provider Kelvion to SLB for more than $3 billion.

Investors now have a busy economic calendar ahead, with the Institute for Supply Management's manufacturing index due Tuesday and the August nonfarm payrolls report scheduled for Friday. Earnings will also remain in focus, with Broadcom and Dell among the companies set to report this week.