09.03.202616:34:53UTC+00US Stocks Trim Losses, Hold Near YTD Low

US equities pared an early Monday selloff but stayed near their lowest levels of the year, as the escalating conflict involving Iran heightened fears of an energy shock that could weigh on the global economy. The S&P 500 and the Dow were last down as much as 0.7%, while strength in major technology names allowed the Nasdaq 100 to edge slightly into positive territory.

Saudi Arabia joined Kuwait, Bahrain, and the UAE in cutting oil production after Iran’s closure of the Strait of Hormuz led to a buildup of crude inventories across the GCC. The move pushed energy prices higher and reinforced expectations that the Federal Reserve will keep interest rates elevated.

Most sectors sold off sharply. Bank of America, Wells Fargo, and Citigroup fell more than 3%, deepening the slide in financials. Jefferies tumbled 5% on concerns about its exposure to defaults at First Brands and MFS, underscoring growing pessimism around the private credit market.

By contrast, semiconductor stocks advanced and helped cap broader index losses, with Broadcom, AMD, and Micro each gaining more than 2%.