MARKET SNAPSHOT
U.S. stocks fell following the latest setback for peace talks in the Middle East and a deepening selloff in U.S. Treasurys. Treasury yields rose, posting a fresh round of multiyear highs. Oil prices climbed but eased from highs hit earlier in the day. Gold prices fell while the U.S. dollar strengthened.
MARKET WRAPS EQUITIES
U.S. stocks started the week on a down note following the latest setback for peace talks in the Middle East and a deepening of last week's selloff in U.S. Treasurys.
The S&P 500 fell 0.8%. The Dow Jones Industrial Average declined 0.7%. The Nasdaq Composite dropped 0.9%.
Treasury yields posted a fresh round of multiyear highs.
The 10-year U.S. Treasury yield climbed to 5.241%, inching higher to levels not seen since 2007, while the 30-year Treasury yield hit 5.561%, its highest rate since 2002. The two-year U.S. Treasury yield rose to 4.922%, a level last seen in May 2024.
An early rally in oil prices and gains in yields of U.S. Treasurys eased from highs hit earlier in the day on reports that Saudi Arabia's flagship oil company, Saudi Aramco, started loading vessels at the Red Sea port of Yanbu via the pipeline. The pipeline was previously closed after being hit by drone strikes earlier this month.
President Trump rejected an Iranian proposal for a seven-day ceasefire that would have reopened the Strait of Hormuz. Trump told aides that he expects another U.S. bombing campaign against Iran after the midterm elections in November, according to The Wall Street Journal.
Earlier Monday, stock markets in Asia ended mixed.
China's Shanghai Composite Index fell 1.7%, the Shenzhen Composite Index dropped 3.1%, and the ChiNext Price Index tumbled 4.5%.
Hong Kong's Hang Seng Index rose 0.5%, snapping a three-session losing streak.
South Korea's Kospi fell 2.7%, snapping a four-session winning streak.
Japan's Nikkei Stock Average closed 0.7% lower.
Australia's S&P/ASX 200 Benchmark Index rose 0.2%.
New Zealand's S&P/NZX 50 Index edged up 0.1%.
COMMODITIES
Front-month crude-oil futures climbed 0.2% to $92.60 a barrel. That's after crude oil jumped to up around 3% in morning trade. This makes it two of the past three trading sessions that crude oil has finished trading higher.
Putting pressure on crude-oil futures was the reopening of the East-West pipeline by Saudi Arabia, bringing on the pipeline for the first time since Sept. 10, when the pipeline suffered damage from drone attacks.
Front-month Brent crude oil settled up 0.9% to $105.28 a barrel.
Gold prices tumbled as a diplomatic impasse over the Iran war kept energy costs elevated, adding to inflation pressures and bolstering expectations that the Federal Reserve will raise interest rates again next month.
Front-month Comex gold for September delivery fell 3.5% to $4135.40 a troy ounce.
Other precious metals followed suit, with silver futures dropping 4.7% to $61.220 a troy ounce.
TODAY'S TOP HEADLINES
Saudi Arabia Resumes Red Sea Oil Exports in Blow to Iran
DUBAI-Saudi Arabia has resumed exporting oil via its East-West pipeline after repairing damage caused by drone strikes, people familiar with the matter said Monday, restoring a crucial route around the Strait of Hormuz and dealing a blow to Iran.
Stretching 750 miles across Saudi Arabia to the Red Sea port of Yanbu from the kingdom's oil-producing heartland on the Persian Gulf, the East-West pipeline has become one of the world's most important pieces of energy infrastructure during the Iran war, serving as a workaround for sharply curtailed tanker traffic through Hormuz.
The East-West pipeline can carry up to 7 million barrels a day-about 2 million for domestic Saudi refiners and the rest for export-but had never operated at full capacity for an extended period before the Iran war began on Feb. 28. Roughly 4 million barrels a day-around 4% of global supply-were flowing through it before drone strikes blamed on Iran-backed forces in Iraq damaged the pipeline on Sept. 10, analysts estimate.
Nvidia Adds Record $150 Billion to Stock Buyback
Nvidia, flush with cash from the artificial-intelligence boom, is launching the largest-ever U.S. stock buyback.
The chip giant on Monday said its board had approved a $150 billion increase to the Santa Clara, Calif.-based company's share-repurchase program, bringing the total buyback authorization to $235 billion.
The authorization eclipses the $110 billion stock buyback that Apple unveiled in May 2024 and comes just four months after Nvidia's board added $80 billion to the buyback program.
AMD to Acquire World Labs for $8.2 Billion
Advanced Micro Devices agreed to acquire artificial-intelligence research firm World Labs for in an all-stock deal valued at about $8.2 billion.
AMD, a semiconductor company that recently touched a $1 trillion valuation, said the deal would bring leading AI research and development talent and help the company develop better AI hardware, software, and systems, especially in the growing field of physical AI and robotics.
World Labs focuses on spatially-intelligent AI models that can generate and simulate interactive 3-D environments. The company was co-founded and is led by Fei-Fei Li, who is joining AMD as executive vice president and chief scientist.
FAA to Delay 737 MAX 10 Approval Over New Software Glitch
The Federal Aviation Administration will delay certification of Boeing's latest 737 MAX model as air-safety regulators assess a new software glitch that some industry officials worry may pose a potential safety risk while landing, the agency chief said Monday.
Boeing has been seeking to win the FAA's approval for the MAX 10, the longest version of the 737 variant.
"We haven't concluded whether this is a safety of flight issue or not," FAA Administrator Bryan Bedford said at a press conference Monday, when asked about the software glitch. "But we will be delaying the 10 until we're satisfied that we don't have an issue here."
The Nike Lifer Driving a High-Stakes Turnaround in China
Cathy Sparks' first job at Nike was selling sneakers in one of its Oregon stores. Thirty years later, she has a tougher assignment: Convincing China's millions of sneaker fans that they should give the company a second chance.
It is a daunting challenge for a Nike lifer who became head of its China business this spring-one that carries outsize importance for a sports giant that is struggling globally.
China is Nike's second-largest market. But over the last five years, it has moved from being its fastest-growing region to one of its worst as Nike failed to capitalize on a sporting boom that has boosted rivals such as On and Hoka. Nike's revenue in China and Taiwan is down nearly 30% from its peak five years ago.
Why MongoDB Stock Is Sinking 17% on Its CEO's Departure
Shares of MongoDB were taking a beating on Monday after the database company said its president and CEO had stepped down to lead a new business segment at Meta Platforms.
The stock fell 17% to $340.06 and was on pace for its largest daily percentage decline since March 3, according to Dow Jones Market Data. Meta fell 4% to $721.70.
MongoDB said Chirantan Desai had stepped down as president and CEO effective immediately for "a senior role" at Meta. MongoDB added it is searching for its next permanent CEO.
SpaceX Launches Starship for First Orbital Mission
SpaceX's Starship entered orbit for the first time and deployed the latest version of its Starlink satellites, critical steps in the company's push for the experimental rocket to handle a range of missions.
SpaceX launched Starship from a pad in Texas on Monday just before 9 a.m. Eastern time, according to the company's live feed. The Monday flight marks the 14th test of Starship, the massive rocket that SpaceX wants to move from a research-and-development phase to one where it carries revenue-generating payloads.
The vehicle carried 26 satellites that SpaceX added to its current constellation, which delivers internet service to customers around the world.
Expected Major Events for Tuesday 00:30/JPN: Aug Detailed Import & Export Statistics
04:30/AUS: Reserve Bank of Australia monetary policy decision
05:00/JPN: Jul Indexes of Business Conditions - Revision
08:00/TAI: Aug Business Indicators
08:59/JPN: Sep Monthly Economic Report
23:00/SKA: Aug Service Industry Activity Index
23:00/SKA: Aug Industrial Production Index
23:50/JPN: Aug Preliminary Retail Sales
23:50/JPN: Aug Preliminary Industrial Production
00:00/NZ: Sep ANZ Business Outlook
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