US stocks closed lower on Monday as investors assessed renewed uncertainty over US-Iran negotiations and higher oil prices.
The Dow Jones Industrial Average fell 272.63 points, or 0.51%, to 53,459.78, while the S&P 500 and Nasdaq Composite also declined.
Rising crude prices added to market pressure as the ceasefire between the US and Iran expired and negotiations remained stalled.
Dow, S&P 500 and Nasdaq fall
The S&P 500 declined 0.52% to 7,745.06, while the Nasdaq Composite fell 0.32% to 26,644.91.
Most of the S&P 500’s 11 major sectors ended lower, with communications services, consumer staples and consumer discretionary among the weakest performers.
The declines came after the S&P 500 reached a record high last week following a strong earnings season.
Investors are now facing a quieter week for economic catalysts, although the Federal Reserve’s latest meeting minutes are due Wednesday.
Retail earnings will also provide a focus for investors. Home Depot is scheduled to report on Tuesday, followed by Lowe’s on Wednesday and Walmart on Thursday.
The results are expected to provide further insight into the health of US consumers after weaker July retail sales and jobs data.
Oil rises as US-Iran tensions persist
Oil prices moved higher as investors assessed the expiration of the US-Iran ceasefire and a lack of progress in negotiations between the two countries.
West Texas Intermediate crude futures rose 2.7% to settle at $84.69 a barrel, while Brent crude futures gained 2.6% to $90.84 a barrel.
The increase in oil prices provided support to energy stocks even as most other sectors declined.
The Strait of Hormuz remained a key focus for markets amid concerns over potential disruptions to energy supplies.
Iran has warned that it could shift to an offensive posture if diplomatic efforts with the US fail.
Higher oil prices also pushed the 30-year Treasury yield to its highest level since June 2007. Investors continue to monitor the potential impact of energy prices on inflation and broader financial conditions.
Micron gains as AI trade remains in focus
Micron Technology was one of the stronger performers, with its shares gaining 4% during Monday’s session.
The move followed reports that the Trump administration does not support Apple buying memory chips from China, while separate reports indicated strong revenue growth at AI company Anthropic.
The technology sector remained volatile, reflecting continued investor uncertainty over the returns from heavy artificial intelligence investment.
Gains in semiconductor stocks helped offset declines among software companies.
Investors are also looking ahead to Nvidia’s quarterly results next week.
The chipmaker is the world’s most valuable company, and its results could provide further insight into demand for AI infrastructure and the sustainability of the technology rally.
The combination of geopolitical risks, higher energy prices and upcoming corporate results left investors cautious as Wall Street moved away from last week’s record levels.
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