Stocks slide, bond rout deepens as US and Iran trade attacks

New York, September 2 - Stock indexes saw a partial rebound on Wednesday following three days of declines, as investors monitored developments in the U.S.-Iran conflict. Meanwhile, the Japanese yen experienced a notable rise against the U.S. dollar, though the reason behind this shift remained unclear. The yen had recouped around half of its gains made following a rare joint intervention by the U.S. and Japan at the end of July.

Currently, the yen was up 0.79 percent at 158.92 per dollar. U.S. Treasury yields softened from multi-year highs, reflecting concerns over tighter monetary policy and deteriorating fiscal conditions across major economies. Fears of renewed escalation in the Middle East were heightened after the U.S. and Iran exchanged their largest barrage of attacks since July.

The conflict, which has persisted since the U.S. launched strikes on Iran in February, has the potential to further deepen the situation. Oil prices climbed by approximately 1 percent due to worries about further disruptions to energy supplies, with Brent crude futures increasing by 98 cents, or 1 percent, to settle at $95.63 a barrel, while U.S. West Texas Intermediate crude futures rose by 79 cents, or 0.9 percent, to settle at $91.01.