US-Iran tensions weigh on markets

On August 17, 2026, U.S. stock markets were muted as investors weighed escalating tensions between the United States and Iran. A senior Iranian official told Reuters that Tehran would escalate tensions in the Strait of Hormuz and the wider region if diplomacy with the U.S. fails, signaling a shift to an offensive policy. This geopolitical uncertainty weighed on sentiment, with the Dow Jones Industrial Average and S&P 500 edging lower, while the tech-heavy Nasdaq Composite was flat to slightly higher. Brent Crude futures rose about 0.4% on supply concerns, lifting the energy sector. Meanwhile, technology stocks were supported by a Reuters report that Anthropic, preparing for its IPO, forecast 2028 revenue of roughly $190 billion to $200 billion. Chipmakers led gains, with Micron Technology and Western Digital — Sandisk rising, and Nvidia shares also advanced ahead of its earnings report. Investors also monitored United States — Federal Reserve policy expectations, with traders pricing in a nearly 31% chance of a rate hike in September, down from near-even odds a week ago. Wells Fargo Investment Institute changed its call to expect a 25-basis-point rate increase this year. Upcoming earnings from Walmart and Home Depot were also on investors' radar.