Monday's trading session wrapped up with the three major indices showing mixed results, as technology shares broadly retreated. Treasury yields moved lower following media reports suggesting the US Treasury might utilize its general account to fund buyback operations, with the 10-year yield dropping more than 3 basis points to 4.704%. Meanwhile, the 30-year yield, which had surged past 5.3% last week to touch levels not seen in nearly two decades, fell 4 basis points to settle at 5.234%.
By the closing bell on Wall Street, the Dow Jones Industrial Average added 140.14 points, or 0.26%, finishing at 53,417.16. The S&P 500 slipped 21.51 points, or 0.28%, to close at 7,652.86, while the tech-heavy Nasdaq Composite dropped 200.26 points, or 0.76%, ending the day at 25,980.19. Notable decliners included SK Hynix falling 4.9%, Micron Technology dropping 5.8%, SanDisk losing 6.4%, and NVIDIA sliding nearly 3%. The Nasdaq Golden Dragon China Index closed down 1.67%, with Alibaba retreating 0.7%.
Across European markets, Germany's DAX30 slipped 24.26 points, or 0.09%, to 26,104.29. The UK's FTSE100 gained 35.27 points, or 0.33%, reaching 10,851.83, while France's CAC40 declined 31.42 points, or 0.37%, to 8,453.01. The Euro Stoxx 50 fell 16.50 points, or 0.26%, to 6,449.15, Spain's IBEX35 advanced 138.97 points, or 0.70%, to 20,100.47, and Italy's FTSE MIB dropped 123.04 points, or 0.23%, to 52,545.00.
In Asian equity markets, Japan's Nikkei 225 lost 0.74%, while South Korea's KOSPI index tumbled 3.12%.
The US dollar index, which measures the greenback against six major currencies, rose 0.2% to close at 99.003 in late trading. At the close of New York currency markets, the euro traded at $1.1663, down from $1.1683 the prior session, and the British pound fetched $1.3631, lower than the previous $1.3652. The dollar strengthened to 159.19 Japanese yen, up from 159.02 yen, and climbed to 0.8026 Swiss francs from 0.8008 francs. The Canadian dollar weakened, with the greenback buying 1.3850 loonies versus 1.3761 previously, and the Swedish krona slipped to 9.4973 per dollar from 9.4626.
In the cryptocurrency space, Bitcoin advanced 1.82% to $79,009.88 at the time of writing, while Ethereum climbed over 1% to $2,482.55.
Oil prices closed lower, with light crude for October delivery on the New York Mercantile Exchange falling $2.05, or 2.35%, to settle at $85.01 per barrel. Brent crude for October delivery also dropped $2.22, or 2.35%, to close at $92.17 per barrel.
Precious metals saw gains, with spot gold rising 1.07% to $4,652.50 per ounce and spot silver trading at $68.94 per ounce.
Macroeconomic Updates
American public support for the war with Iran has fallen to just 31%, the lowest level since the conflict began, according to the latest polling data. This decline has kept President Trump's approval rating near historic lows at 33%. Only 31% of Americans currently back military action against Iran, down from 37% in March and 34% earlier this month, with the drop largely driven by waning support among self-identified Republicans. Trump's popularity appears to be weighed down by public dissatisfaction with the Iran war, as this marks the second consecutive poll placing him at record lows, with just 33% of respondents approving of his performance. The survey also revealed that approximately 83% of Americans believe the war will drag on for a long time, up from 80% in the earlier poll this month.
The US is employing a dual strategy of pressure and diplomacy to bring Canada back to the negotiating table. After tariff talks between the two nations broke down, Trump announced additional tariffs and warned of severe consequences if Canada does not comply, while his officials simultaneously attempt to ease tensions. Treasury Secretary Bessent stated at a press conference announcing sanctions on Iran that Trump wants Canada to return to negotiations in good faith. Canadian Prime Minister Carney responded that a mutually beneficial agreement is possible, but Canada will only come back to the table when the US adopts the right approach toward Canadian industries. Earlier, Vice President Vance, speaking at an event in Maine, indicated that trade negotiations with Canada are still ongoing and that both sides should reach a deal. However, he also demanded that the Canadian Prime Minister demonstrate a commitment to fair and equitable trade policies without taking advantage of the US.
Treasury Secretary Bessent offered little new insight into US debt operations during his "Economic D-Day" briefing. This follows his surprise announcement to expand the scale of long-term Treasury buybacks after the 30-year yield hit its highest level since 2007. Under the current plan, running from September 9 through November 4, the minimum amount for each repurchase operation will rise from $20 billion to $40 billion. When asked whether further expansion was possible, Bessent responded, "We haven't even bought a single bond yet; the next operation isn't until September 9." This marks a notable shift from his earlier hints that buyback amounts could exceed the newly set floor. Analysts point out that debt buybacks are essentially a routine, predictable debt management tool rather than an emergency response to market stress. Bessent's previous claim of having a "full toolkit" to stabilize the bond market had fueled speculation that the Treasury might reduce long-term debt issuance. Regarding potential cuts to long-bond auction sizes, Bessent said the Treasury will "proceed with the regular issuance schedule," suggesting that specifics will be revealed in the next quarterly refunding announcement.
The SEC is investigating the near-collapse of AI hedge fund Situational Awareness, reportedly issuing subpoenas to major Wall Street banks that participated in the fund's trading and provided leveraged financing. According to sources familiar with the matter, the SEC has requested trading timelines from the banks as well as communications between the fund and its lenders regarding borrowed capital, along with instructions to preserve all related records. Founded by former OpenAI researcher Leopold Aschenbrenner, Situational Awareness had generated substantial returns riding the AI boom. The fund managed over $30 billion in assets at its peak and borrowed tens of billions to amplify its positions. However, late last month, as hot AI stocks declined and its short positions in traditional tech stocks rallied, losses quickly mounted, forcing a "fire-sale liquidation" with most of its equity portfolio sold at a discount to Citadel. The SEC noted that the investigation remains in its early stages and does not necessarily indicate that penalties will follow. Situational Awareness has not been accused of any wrongdoing, and the fund has stated it will "fully cooperate with any regulatory requirements."
The US Treasury has announced the formation of a "Quantum Security Preparedness Working Group" to lead the financial industry's transition to post-quantum cryptography, strengthening protections for sensitive data, critical infrastructure, and the digital economy. Treasury Secretary Bessent emphasized that America must stay at the forefront of technological security, with the working group ensuring the financial system remains safe, stable, and competitive amid new technological disruptions. The group brings together government agencies, financial institutions, and technology providers, focusing on three key objectives: driving the migration to post-quantum cryptography across the financial sector, enhancing third-party supply chain security readiness, and assessing risks posed by digital assets and emerging technologies. The Treasury noted that once quantum computing matures, it could potentially break current encryption systems, posing long-term threats to financial data, payment systems, digital identities, and market infrastructure. Early deployment of post-quantum cryptography is therefore critical to maintaining economic security and the resilience of the financial system.
Company Highlights
Boeing has secured a US Air Force contract valued at up to $131.2 billion. The project, designated F-15 Eagle Crest, serves the F-15 program office and encompasses aircraft production, systems integration, modernization, upgrades, modifications, maintenance support, and the development of organic depot maintenance capabilities. The contract delivers and sustains the core combat capabilities of the F-15 "Eagle" weapon system for the US Air Force, Air National Guard, and other Department of Defense customers.
Analyst Actions
Wells Fargo has raised its price target on Marvell Technology, citing the company's strong performance this year and expectations for continued upside ahead of its upcoming quarterly earnings report. The investment bank maintains an "Overweight" rating on the chipmaker and increased its target price from $240 to $310, implying nearly 31% upside from last Friday's closing price. "We view Marvell more as a chip company with an independent growth trajectory that can outperform the broader industry pace regardless of whether the overall semiconductor cycle is in an upswing or downturn," wrote Wells Fargo analyst Aaron Rakers in a note to clients.