Stocks on Wall Street closed mixed Monday as oil prices declined amid a temporary pause in hostilities between the United States and Iran and renewed efforts to restart negotiations to end the conflict. The S&P 500 edged up less than 0.1% after fluctuating between small gains and losses throughout the day. The Dow Jones Industrial Average rose 0.5%, while the Nasdaq composite fell 0.2%, marking its fourth consecutive decline. All three major indexes are poised to end July with monthly losses, with the S&P 500 and Nasdaq facing their second straight down month.
Oil prices retreated sharply from last week’s spike driven by an escalation in the U.S.-Iran conflict, which had sparked concerns over global supply disruptions through the crucial Strait of Hormuz. Brent crude, the global benchmark, dropped 6.3% to settle at $85.87 a barrel for October delivery, down from more than $100 per barrel last week. U.S. crude for September delivery fell 7.5%, closing at $82.61 a barrel. The conflict’s impact has extended beyond energy markets, contributing to rising gasoline prices and increased shipping costs worldwide, factors that are putting additional pressure on consumer budgets.
Bond markets moved modestly, with the 10-year U.S. Treasury yield dipping to 4.65% from 4.69% late last week. Meanwhile, technology stocks contributed to uneven trading, reflecting a split among major companies. Shares of Nvidia and Micron Technology declined by 5% and 2.3%, respectively, while Microsoft and Apple rose 1.9% and 1.2%. These tech giants, due to their substantial valuations, continue to exert significant influence over broader market sentiment.
Sectors such as communications and financial services saw gains. Alphabet, Google’s parent company, increased by 2.1%, Charter Communications by 6.7%, and Comcast by 2.3%. Payment processors also advanced, with American Express up 2.8%, Capital One Financial gaining 2.1%, Visa rising 1.9%, and Mastercard adding 2.2%. In Asia, Chinese memory chipmaker CXMT made a strong debut on the Shanghai stock exchange, quickly becoming the country’s most valuable listed company with a market capitalization of approximately 3.3 trillion yuan (nearly $490 billion).
Looking ahead, investors are focused on a series of economic reports and corporate earnings releases scheduled for this week. Consumer confidence data is expected Tuesday, followed by inflation figures on Thursday. The Federal Reserve will provide an important update on Wednesday regarding its interest rate policy amid ongoing inflation concerns, partly influenced by the geopolitical tensions and global tariff policies. Market expectations currently assign about a 36% chance of a rate increase at the Fed meeting, with at least one hike anticipated before year-end.
The ongoing inflationary pressures, particularly from elevated gasoline costs, continue to strain household spending, potentially impacting discretionary expenses such as clothing and travel. Investors are closely watching corporate earnings from sectors ranging from manufacturing to technology for signs of consumer resilience or further economic slowing. Key earnings reports this week include Sherwin-Williams, Boeing, and Visa on Tuesday; Starbucks, Chipotle, and Microsoft on Wednesday; and Amazon and Apple on Thursday. These results will be closely analyzed for insights into profit growth prospects and overall economic health amid a complex backdrop of geopolitical and inflation-related challenges.