NEW YORK, August 31, 2026, 19:00 EDT — Broad-based ETFs held their ground on Monday even as an oil shock caused the Dow Jones Industrial Average to tumble 374 points.
- The Dow ended the session 374.09 points lower, dropping 0.70% to finish at 53,185.90.
- Brent closed up 2.7% at $90.49, while the yield on the 10-year Treasury touched 4.75%.
- Between 18:00 and 19:00 EDT, SPY slipped -0.01%, QQQ eased -0.06% and DIA edged up +0.01%.
- Energy rose 2.04%, as 372 out of 492 S&P 500 tracked components fell.
U.S. stocks finished August down as a fresh oil shock weighed on rate-sensitive stocks. The Dow fell by 374.09 points, while broad equity ETFs saw little change in the final hour to 19:00 EDT.
The divide is significant. In cash trading, markets accounted for increased fuel and borrowing expenses, though selling pressure did not intensify following the close. Brent crude finished up 2.7% at $90.49 per barrel.
The S&P 500 dropped 25.62 points, or 0.33%, to close at 7,686.14. The Nasdaq Composite declined 0.12% to finish at 26,370.89. The Russell 2000 slipped 0.54% to 2,956.45 AP market report.
U.S. troops targeted Iranian rocket launchers positioned close to the Strait of Hormuz, according to U.S. Central Command, which stated that the launchers posed a risk to merchant vessels in the area. Roughly 20% of the world’s oil supply typically transits through the strait AP conflict report.
The 10-year Treasury yield increased to 4.75% from 4.73% on Friday. The two-year yield was unchanged at 4.34%. As a result, the oil shock mainly affected longer-term inflation risk.
Energy rose 2.04%, while declines were seen in nine of 11 sectors. Technology climbed 0.44%. Communication services dropped 1.35%, with sector performance indicating a more selective session than headline index moves reflected.
Exxon Mobil NYSE:XOM climbed 2.7%, while Chevron NYSE:CVX advanced 2.1%. Edison International (NYSE:EIX) fell sharply by 23.1%. PG&E Corporation NYSE:PCG was down 20.1% amid worries over California wildfire liabilities.
75.6%
24.0%
Among 492 tracked S&P members, decliners exceeded advancers by over three to one. However, trading activity was not consistently robust. SPY volume reached 97% of its 20-session average.
The SPDR S&P 500 ETF Trust NYSEARCA:SPY edged down 0.01% between 18:00 and 19:00 EDT. Invesco QQQ Trust NASDAQ:QQQ declined by 0.06%. SPDR Dow Jones Industrial Average ETF Trust NYSEARCA:DIA remained largely unchanged.
The quiet trading did not reverse the earlier declines at the close, nor did it indicate a fresh round of broad selling. Small-cap activity stood out, as the iShares Russell 2000 ETF NYSEARCA:IWM saw volume climb 24% above its 20-session average.
Edward Jones strategist Brock Weimer wrote that the Fed is likely to show little tolerance for significant inflation surprises. CME FedWatch indicated markets saw a 66% probability of a rate hike in September.
August closed with gains overall. The S&P 500 climbed 2.62% for the month, the Nasdaq increased by 3.93%, the Dow was up 1.34%, and the Russell 2000 finished 0.86% higher.
Risks: Renewed clashes near Hormuz may trigger sharp moves in crude and equity futures during overnight trading. The upcoming U.S. payrolls release on Friday could shift rate outlooks. Calm in post-market ETFs does not eliminate these risks.
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