Major indices on Wall Street opened lower yesterday, as renewed tensions between the United States and Iran cast doubt over the prospects for peace in the Middle East, marking a cautious start to the second half of 2026.
The Dow Jones Industrial Average fell 88 points, or 0.17%, to 52,231.18, while the S&P 500 dropped 20.5 points, or 0.27%, to 7,478.84 at the open, and the Nasdaq Composite declined 174.2 points, or 0.66%, to 26,039.507.
European stocks also retreated after a strong close to the second quarter, amid caution over signs that talks between Tehran and Washington had reached a new impasse. The pan-European Stoxx 600 fell 0.3% to 639.64, having recorded its strongest quarterly performance since October 2020 in the previous session.
The technology sector, which had led gains over the past three months, showed little change, with chipmaking equipment manufacturer ASML falling 1.1% and slight declines recorded in shares of AQE and Infineon.
Schneider Electric shed 2.1% after the artificial intelligence equipment maker announced an agreement to acquire Cognite Holdings, a private company specialising in AI and industrial data software, for $3.1 billion in an all-cash deal.
Attention is focused on the European Central Bank's Sintra conference, where Federal Reserve Chairman Kevin Warsh and ECB President Christine Lagarde are both expected to speak later today.
Data from the London Stock Exchange Group indicate that traders expect both central banks to raise interest rates by at least 25 basis points later in the year. Oil prices have retreated to pre-Iran-war levels, though concerns remain that pressure on prices could persist for some time.
In Tokyo, the Nikkei closed higher for a third consecutive session, supported by AI-related stocks, though gains were capped by fresh setbacks in US-Iran talks and investor caution in a highly volatile market.
The Nikkei rose 0.59% to close at 70,474.96, pulling back from an earlier gain of as much as 2.7%. The broader Topix index ended up 0.42% at 4,011.50.