Dow Up 215 as AI Stocks Rise; Yields and Iran Tension Weigh

The Dow Jones Industrial Average rose 215 points on Wednesday as gains in AI-linked stocks offset broader market headwinds. The S&P 500 gained 0.10% and the Nasdaq Composite slipped 0.05% as traders balanced geopolitical and macroeconomic risks against demand for artificial intelligence infrastructure.

Dell led advancing names after the company raised its annual profit and revenue forecasts, sending its shares up 6.65%. Nvidia climbed 1.01% while Apple fell 0.26% and Tesla declined 0.79%, illustrating selective strength in firms tied to AI spending and weakness in other large-cap stocks.

Bond markets were a focal point. The yield on the U.S. 10-year Treasury briefly reached 4.814%, the highest level since November 2023, before easing two basis points. Yields also rose in the U.K., Germany and France, and Japan’s 10-year government bond remained near multi-decade highs. Higher yields raise the discount rate applied to future corporate earnings, which can reduce equity valuations.

Oil traded near $90 a barrel as renewed clashes between U.S. and Iranian forces increased concerns about energy supply and inflation. Traders have factored stronger oil prices into expectations for U.S. monetary policy. The CME FedWatch tool priced about a 66% probability of a September interest-rate increase, up from roughly 37% a week earlier, after recent comments from Federal Reserve officials.

Global equity markets moved lower outside the U.S. The pan‑European Stoxx 600 fell 0.49%. The FTSE 100 and France’s CAC 40 each lost about 0.6%, Germany’s DAX dropped 0.7% and Italy’s FTSE MIB declined 0.5%. In Asia, Japan’s Nikkei 225 fell 2.85%, South Korea’s Kospi declined 4%, Australia’s S&P/ASX 200 was down 0.97% and China’s CSI 300 lost 1.38%.

Economic data ahead of Friday’s U.S. jobs report added to market considerations. ADP reported private payrolls rose by 38,000 in August, below a revised 46,000 in July and short of the roughly 47,000 increase economists had forecast. Job gains were concentrated in healthcare and a few other industries.

Trading on Wednesday combined sector-specific gains in AI-related names with broader caution driven by rising yields, higher oil prices and renewed geopolitical tensions as markets awaited more economic data later in the week.