Major U.S. stock indexes declined Monday while oil prices climbed sharply as investors weighed stalled Iran diplomacy, softer economic data and upcoming earnings reports from Home Depot, Walmart and Nvidia.
By yourNEWS Media Newsroom
Wall Street’s three major indexes finished lower Monday as investors turned cautious ahead of key retail earnings reports and oil prices rose on concerns that the United States and Iran remain far from an agreement that could ease pressure on global energy supplies.
West Texas Intermediate crude futures gained more than $2 per barrel to settle at $84.50, while Brent crude rose $2.39 to close at $90.87.
The increase reflected renewed concern over the Iran war and diminished expectations for a diplomatic breakthrough, adding to fears about potential disruptions to global oil supplies. Higher crude prices provided support for energy shares even as most major stock-market sectors declined.
According to preliminary closing data, the S&P 500 fell 39.55 points, or 0.51%, to 7,746.21.
The Nasdaq Composite declined 76.87 points, or 0.31%, to 26,652.29, while the Dow Jones Industrial Average dropped 263.21 points, or 0.49%, to 53,469.20.
Investors entered the week with July’s weaker retail sales and employment figures still weighing on sentiment and are now looking to major retailers for clearer evidence of how American consumers are responding to the economic environment.
Home Depot is scheduled to report quarterly results Tuesday, followed by Walmart on Thursday.
“Concerns about recent softer data have the market being a bit tepid and waiting for retail earnings for direction,” said Phil Blancato, chief market strategist at Osaic Wealth.
Blancato also noted that August trading volumes are frequently lighter because many market participants are on vacation.
“There’s a combination of summer doldrums and waiting for data on the consumer,” Blancato added.
Most of the S&P 500’s 11 major industry sectors ended lower Monday. Communication services, consumer staples and consumer discretionary stocks were among the weakest performers.
Technology shares moved between gains and losses throughout the session as investors continued to assess whether the enormous sums being spent on artificial intelligence will ultimately generate sufficient returns.
The technology sector has experienced increased volatility amid uncertainty surrounding AI-related capital expenditures and company valuations.
Chipmakers performed comparatively well Monday, with the PHLX Semiconductor Index advancing, while software companies struggled and the S&P 500 Software & Services Index declined.
Investors are also preparing for earnings next week from Nvidia, the world’s most valuable company and a central player in the artificial intelligence investment boom.
Nvidia’s results are expected to receive significant attention as investors evaluate whether continuing demand for AI computing infrastructure can justify the heavy spending and elevated expectations surrounding the sector.
Among individual stocks, U.S.-listed shares of Vista advanced after investor Peter Thiel acquired a 1% stake in the Latin American oil company.
Monday’s session left markets balancing several competing forces: concerns about weaker U.S. economic data, uncertainty over consumer spending, volatile technology shares and rising energy prices tied to the continuing conflict with Iran.
With Home Depot and Walmart reporting this week and Nvidia scheduled to release results next week, investors are looking to corporate earnings for fresh indications about the strength of both the American consumer and the technology-driven rally that has helped shape market performance.
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