Stocks Open Mixed as U.S. and Iran Strikes Lift Brent and Volatility

U.S. stocks were mixed soon after Wednesday’s opening bell, with the Dow lower and volatility higher as renewed U.S. Iran clashes pushed Brent crude toward $100 a barrel. The Dow Jones Industrial Average fell 210.86 points, or 0.41%, to 51,096.9, the S&P 500 slipped 7.92 points, or 0.10%, to 7,601.86, while the Nasdaq Composite rose 16.94 points, or 0.06%, to 27,110.8.

The early pressure came from the energy market. Brent crude rose $2.00, or 2.08%, to $98.00, as investors reacted to the latest escalation around the Strait of Hormuz. The U.S. and Iran exchanged military strikes after the U.S. military disabled an empty oil tanker heading toward Iran, adding another layer of strain to ceasefire hopes. Axios reported that U.S. forces intercepted Iranian missiles and drones and carried out strikes near the Strait of Hormuz, while Iran said its actions were retaliation for the tanker incident.

The CBOE Volatility Index rose 0.48 point, or 3.04%, to 16.25, suggesting traders were paying for protection even as the broader market selloff remained contained. AInvest reported that President Donald Trump indicated the U.S. maritime blockade of Iranian ports could last until Labor Day, Sept. 7, extending the period of uncertainty for energy markets and shipping routes.

Technology offered a partial offset. The latest research note from Wedbush said SpaceX plans to raise $75 billion through an IPO under the ticker SPCX, selling 555.6 million shares at $135 and implying a $1.75 trillion valuation. Wedbush described the deal as a major test for public markets and said the proceeds are expected to support Starlink, AI computing resources and future space-based data-center ambitions.

Meanwhile, AI remained central to the equity narrative. Palo Alto Networks delivered stronger than expected results, including adjusted EPS of $0.85, revenue of $3.0 billion, and Next-Generation Security ARR of $8.13 billion, though the stock’s reaction raised questions about whether too much optimism had already been priced in.

Investors are also watching Washington. Treasury Secretary Scott Bessent is scheduled to testify before the Senate Finance Committee at 10 a.m. on President Trump’s fiscal 2027 Treasury budget request, with markets alert to any signals on deficits, financing needs or economic policy priorities.

The next test is whether oil stabilizes below $100 or forces investors to reassess inflation, growth and interest-rate risk. After the closing bell, Broadcom and CloudStrike are scheduled to report their quarterly earnings.