Wall Street ended Monday’s session mixed as a sharp increase in crude oil prices weighed on technology shares and heightened inflation concerns, while energy stocks advanced ahead of major bank earnings and several closely watched U.S. economic reports.

By yourNEWS Media Newsroom

NEW YORK — The Nasdaq Composite declined Monday, Oct. 12, as oil prices climbed nearly $2 a barrel following deadly attacks on Saudi Arabia’s main international airport, renewing concerns about inflation and the global energy supply ahead of a week of major corporate earnings announcements and economic data releases.

The technology-heavy index fell 0.44%, while the S&P 500 finished slightly lower and the Dow Jones Industrial Average advanced as gains in energy and selected technology companies offset weakness among semiconductor manufacturers and consumer discretionary stocks. Investors remained cautious as escalating tensions in the Middle East complicated expectations for energy prices and the Federal Reserve’s next interest-rate decision.

According to Reuters’ report on Monday’s trading session, the Nasdaq ended at 27,245.90, down 120.27 points, while the S&P 500 declined 4.30 points, or 0.06%, to 7,807.24. The Dow rose 195.60 points, or 0.38%, to close at 51,850.55.

The day’s biggest market pressure came from the energy sector, where crude oil futures rallied following attacks on Riyadh’s international airport over the weekend. The strikes raised concerns about additional disruptions to oil production and transportation in a region already experiencing significant instability.

Brent crude futures settled $1.93 higher, or 1.8%, at $106.65 per barrel, their highest closing level since Sept. 15. U.S. West Texas Intermediate crude advanced $1.89, or 2%, to $93.74 per barrel, according to Reuters’ oil market analysis.

The increase followed deadly missile attacks on King Khalid International Airport in Riyadh that killed at least 13 people and wounded hundreds. Yemen’s Iran-aligned Houthi movement claimed responsibility for the initial strike Saturday, while additional attacks Sunday intensified fears of a broader regional confrontation.

The attacks overshadowed expectations that additional Russian diesel exports could help ease global fuel shortages. President Donald Trump recently announced an agreement with Moscow intended to increase diesel supplies while also declaring a ceasefire involving Russian and Ukrainian energy infrastructure.

However, Ukrainian officials subsequently reported new Russian strikes against energy facilities, raising questions about whether the announced ceasefire had taken effect. Uncertainty surrounding the agreement, combined with continuing tensions involving Iran and the Strait of Hormuz, has made energy markets especially sensitive to new geopolitical developments.

Higher oil prices have become a central concern for investors because sustained increases can raise transportation, manufacturing and consumer costs. Those pressures can complicate the Federal Reserve’s efforts to control inflation and influence expectations about future interest-rate decisions.

The U.S. Treasury market was closed Monday for Columbus Day, leaving stock investors without the usual trading signals from government bond yields. Treasury yields have recently climbed to levels not seen in approximately 24 years, reflecting concerns about persistent inflation and the possibility that borrowing costs could remain elevated.

Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York, said the absence of bond trading contributed to a cautious session as investors prepared for major economic releases.

“Looking out further in the week, we have some big economic reports,” Ghriskey said, noting that investors lacked direction from the Treasury market.

“We’re also waiting on earnings and that’s significant. The four large banks reporting on Tuesday can have a big impact,” he added.

Third-quarter corporate earnings will become a major focus Tuesday, when several leading financial institutions are scheduled to release results. Goldman Sachs, Citigroup and JPMorgan Chase are among the banks expected to report, providing investors with information about lending activity, consumer finances, investment banking and trading revenue.

Analysts anticipate substantial earnings growth across the broader market. According to LSEG IBES data, third-quarter earnings for S&P 500 companies are projected to increase 30.6% from the corresponding period last year.

The banking industry’s earnings outlook has attracted particular attention because major financial institutions benefited from strong trading activity during the previous quarter. Investors will examine whether those gains continued and whether executives see signs of weakening loan demand or increased financial stress among consumers.

Bank executives’ comments on inflation, interest rates and business conditions could also influence market sentiment beyond the financial sector.

Investors are awaiting September consumer and producer inflation reports, along with retail sales figures, later this week. The releases are expected to provide additional evidence about price pressures, household spending and the strength of the U.S. economy.

Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut, said the combination of economic releases, earnings announcements and increasing oil prices made investors reluctant to take aggressive positions.

“There’s a lot to be wary of,” Pavlik said.

“You’re walking down a train line and you don’t know, because it’s dark, if a train is coming and so, you know, you’re just being real careful,” he added.

Monday’s sector performance reflected those concerns. Energy companies led gains among the S&P 500’s major industry groups as higher crude prices improved the revenue outlook for oil and gas producers, while communication services advanced with support from Meta Platforms.

Technology and consumer discretionary stocks lagged the broader market. Semiconductor shares were especially weak, pushing the Philadelphia Semiconductor Index to its lowest level in approximately three weeks as investors reassessed valuations and growth expectations.

The weakness contrasted with gains in several major technology companies. Microsoft advanced approximately 0.9% after announcing plans for a substantial deployment of its own artificial intelligence chips, an initiative that could reduce its reliance on outside suppliers for some computing requirements.

Earlier in the session, Microsoft’s market capitalization climbed above $4 trillion for the first time in approximately a year, reflecting investor interest in the company’s artificial intelligence infrastructure investments and related business opportunities.

Salesforce also advanced after BofA Global Research upgraded the enterprise software company’s shares to “buy” from “underperform.” The upgrade provided support for the Dow, while eBay rose after Morgan Stanley added the online marketplace company to its list of preferred investment selections.

In the consumer discretionary sector, Chipotle Mexican Grill shares declined after Starbucks stated that it was not pursuing an acquisition of the restaurant chain. The announcement reduced speculation surrounding a potential transaction and contributed to Chipotle’s losses.

The contrasting performances highlighted how company-specific announcements continued to influence individual stocks even as geopolitical developments dominated broader market sentiment.

Investors also assessed comments from Cleveland Federal Reserve President Beth Hammack, who called for a more restrictive monetary policy stance to address inflation.

Hammack said the central bank should move “relatively quickly” toward tighter policy, arguing that inflation had become more widespread across the economy and was beginning to influence businesses’ pricing decisions.

Her remarks reinforced concerns that elevated energy costs could complicate efforts to bring inflation under control.

Market expectations shifted modestly following the comments and the latest increase in oil prices. According to CME Group’s FedWatch tool, traders assigned less than a 22% probability to an interest-rate increase at the Federal Reserve’s October meeting, up from 17.7% on Friday.

Although the probability remained relatively low, the change indicated growing attention to the possibility that policymakers could respond more aggressively if inflation pressures persisted.

The Federal Reserve faces competing economic considerations. Higher borrowing costs can reduce inflation by slowing demand, but they can also make financing more expensive for businesses and households, potentially restraining employment and economic growth.

The approaching inflation reports will therefore be important in determining whether rising energy prices are contributing to broader increases in the cost of goods and services.

Retail sales data will provide another measure of the economy’s resilience, particularly as households contend with higher fuel prices and other living expenses.

The Associated Press summary of Monday’s market performance showed that major U.S. indexes remain substantially higher for the year despite the latest uneven session. Through Monday, the S&P 500 had gained approximately 14% in 2026, the Dow was up 7.9% and the Nasdaq had advanced 17.2%.

Those gains have been supported by corporate earnings expectations and investor interest in artificial intelligence, although rising energy prices and higher bond yields have introduced additional uncertainty.

The market’s near-term direction will depend partly on whether companies deliver the earnings growth analysts anticipate and whether upcoming economic figures support expectations for stable inflation.

Developments in the Middle East will also remain important, particularly if further attacks threaten energy infrastructure or transportation routes used by major oil producers.

For now, Monday’s mixed finish demonstrated the competing influences shaping Wall Street. Higher crude prices supported energy shares but weighed on technology stocks, while optimism about selected companies helped the Dow finish in positive territory.

With major bank earnings beginning Tuesday and inflation and retail sales reports approaching, investors enter the remainder of the week focused on whether corporate performance can sustain the market’s gains amid continuing geopolitical instability and uncertainty over the Federal Reserve’s next steps.

Original article