US stocks today: Dow Jones fell more than 600 points on escalations in Gulf conflict triggering oil price rise and Trump's threat to intensify US-Canada trade war
Last Updated: Sep 08, 2026, 09:17:00 PM IST
Dow Jones fell over 600 points as US President Donald Trump threatened Canadian private jet maker Bombardier’s access to the lucrative U.S. market after its northern neighbour refused to certify American GulfStream jets, escalating a trade dispute between the two countries.
The Dow Jones Industrial Average was down 1.24% or 664 points at 52,749.37, while the S&P 500 fell 0.48% or 36 points to 7,681.71 and the tech-rich Nasdaq Composite lost 0.47% or 123 points to 26,383.23, at 10.30 am ET. Canadian Toronto Stock Exchange-listed Bombardier's shares were trading nearly 7% lower at $293.28.
Trump made the threat in a post on Monday as a trade dispute between Washington and Ottawa escalates, with Canada introducing counter tariffs on $20 billion worth of U.S. goods.
"Based on the fact that Canada has wrongfully, illegally, and steadfastly refused to certify the Gulfstream 500, 600, 700, and 800 Jets, one of the greatest, most technologically advanced airplanes ever made, we are hereby decertifying their Bombardier Global Expresses, and all Aircraft made in Canada, until such time as Gulfstream, a Great American Company, is fully certified, as it should have been many years ago. Further, Canada is effectively prohibiting the sale of Gulfstream products in Canada through this very same certification process. If, for any reason, this situation is not immediately corrected, I am going to charge Canada a 50% Tariff on any and all Aircraft sold into the United States of America," Trump said in a Truth Social post.
Canada Prime Minister Mark Carney said reducing the country’s economic dependence on the US would come with a “cost.”
Oil price rise raises rate hike fears
Brent crude futures traded above $97 a barrel, after hitting $99, following Houthi attacks targeting Saudi oil infrastructure. The attacks are part of an effort to gain control of the Bab al-Mandab Strait, a conduit for Saudi crude after Iran blockaded the Strait of Hormuz, according to a Reuters report.
The jump in oil prices has put inflation back in focus just as markets await consumer and wholesale inflation reports later this week. The data are expected to provide important clues ahead of the Fed's September 16 decision on interest rates.
"Our forecast is that we're going to see a fairly big inflation increase this month, so we are expecting the Fed will raise rates," said FHN Financial's Chris Low, according to Reuters.
Higher energy prices could add to inflationary pressure, complicating the outlook for monetary policy as investors assess whether the Fed may need to keep rates higher.
The European Central Bank is widely expected to raise euro zone interest rates by 25 basis points on Thursday, while expectations of a similar move by the Bank of Japan next week are strengthening. The developments have put the yen on track for its strongest rally in two years.
In the bond market, the yield on the 10-year US Treasury held at 4.78%, unchanged from late Friday and close to its highest level since autumn 2023.
US-listed shares of Novartis tumbled 12.6% after the Swiss pharmaceutical company provided a disappointing update on a study of a therapy for patients with myotonic dystrophy type 1, a neuromuscular disorder.
Qualcomm helped limit the broader market’s losses, rising 4% after announcing a partnership with Amazon to collaborate on large-scale AI data centres. Under the agreement, Amazon will also have the right to acquire up to 25 million Qualcomm shares at $161.26 apiece.
Among individual companies, GE Aerospace rose 0.7% after announcing it would buy Consolidated Precision Productions for $11.75 billion from private investment firms Warburg Pincus and Berkshire Partners.
