S&P 500, Dow edge higher as AI optimism offsets Iran tensions

U.S. stocks faced competing pressures as stronger-than-expected August job growth increased expectations that the Federal Reserve could raise interest rates in September, weighing on the S&P 500 and Dow. Markets also remained sensitive to elevated Treasury yields, which can make stocks less attractive, while renewed U.S.-Iran tensions raised concerns about energy prices and inflation. At the same time, optimism over artificial-intelligence spending supported technology and infrastructure stocks, with Dell and Hewlett Packard Enterprise among the notable gainers. The market’s mixed performance reflected investor confidence in the long-term AI boom alongside caution about interest rates, bond yields, geopolitical risks and the effects of President Donald Trump’s tariffs on hiring and growth.