US equity markets retreated on August 30–31, 2026, with the S&P 500 and Nasdaq both snapping a 4-week winning streak as geopolitical risk resurfaced. US military strikes on Iranian rocket launchers near the Strait of Hormuz reignited crude oil demand concerns and weighed on risk sentiment ahead of G20 meetings where Treasury Secretary Bessent faces mounting trade and diplomatic pressure. Meanwhile, the energy sector outperformed while technology and small-caps lagged.
| Index | Price | Change | Net |
|---|---|---|---|
| S&P 500 ETF | $769.35 | ▼ -0.23% | -$1.75 |
| Nasdaq 100 ETF | $716.43 | ▼ -0.65% | -$4.68 |
| Dow Jones ETF | $535.06 | ▼ -0.03% | -$0.16 |
| Russell 2000 ETF | $295.75 | ▼ -1.35% | -$4.06 |
| Sector | Change | Net |
|---|---|---|
| Financials | ▲ +0.38% | +$0.22 |
| Technology | ▼ -1.55% | -$2.92 |
| Energy | ▲ +0.63% | +$0.39 |
| Healthcare | ▼ -0.24% | -$0.42 |
| Consumer Discretionary | ▲ +1.15% | +$1.33 |
| Consumer Staples | ▲ +0.43% | +$0.37 |
US strikes on Iranian rocket launchers near the Strait of Hormuz rekindled energy-sector volatility. XLE gained +0.63% on supply disruption fears.
Nvidia gave back Friday's gains amid broader tech rotation. XLK fell -1.55%, the worst-performing sector ETF of the session.
Treasury Secretary faces dual diplomacy test: tariff escalation with China/EU and coordinating Iran response with G7 allies.
Defensive rotation visible — XLP (+0.43%) and XLY (+1.15%) outperformed as investors sought safety in staples and discretionary names.
Markets face a pivotal week with August non-farm payrolls data due Friday and G20 outcomes shaping the geopolitical backdrop. The Iran situation could keep energy elevated, while further escalation may push capital into defensive sectors and Treasuries. Nvidia's reversal warrants watching — if the AI trade can't hold, broader tech weakness could accelerate.