A trader works on the floor of the New York Stock Exchange.
NYSE
The S&P 500 ended Monday just below the flatline amid growing doubts that the U.S. and Iran will come to a lasting resolution to the conflict in the near term.
The broad index slipped 0.06% to end at 7,753.11, while the Nasdaq Composite declined 0.32% to 26,605.36. The Dow Jones Industrial Average was down 60.95 points, or 0.11%, closing at 53,975.98.
Intel was a key laggard of the session, falling 4% after the company said it’s going to be offering $15 billion in common stock. Other laggards include Nvidia and Apple, which dropped 2.9% and 1.5%, respectively.
Iran has said it is closing in on a deal with Oman to reopen the Strait of Hormuz, but Tehran has continued to resist direct negotiations with the U.S until several conditions are met.
Iranian Foreign Minister Abbas Araghchi said Sunday there was “no possibility of restarting negotiations” as long as the U.S. continues violating the June memorandum of understanding, without compensating for its “violations,” according to Tasnim News Agency, a semi-official news outlet associated with the Islamic Revolutionary Guard Corps.
Oil prices rose on Monday as uncertainty hovered over the market. U.S. West Texas Intermediate crude futures settled up about 5.1% at $82.13 per barrel. Oil stockpiles in the U.S. Strategic Petroleum Reserve have dropped to the lowest level since January 1983. Additionally, international benchmark Brent crude futures settled up 5% at $87.72.
Last week, Treasury Secretary Scott Bessent‘s comments to CNBC strongly indicated a deal was imminent. But President Donald Trump told Axios on Sunday that the U.S. was “only semi-negotiating” with Iran and wanted the Middle Eastern country to feel economic pressure.
“Everyone has gotten tired of the back and forth,” said Zachary Hill, head of portfolio management at Horizon Investments. But “each time we see some flare-up in Middle East tensions, it’s of a smaller magnitude than what we saw prior, so I do think that’s informing a little bit of what’s going on so far today.” That’s especially with “such strong fundamentals in the earnings season,” he added.
The three major U.S. indexes are coming off their best weeks since April. The S&P 500 finished last week at an all-time closing record.
Stocks got an end-of-week boost on Friday after the July nonfarm payrolls report showed an unexpected contraction, raising hopes for investors that the Federal Reserve will hold off on interest rate hikes. Fed funds futures traders now price in an almost 52% likelihood that the central bank raises rates at its September meeting, down from a 67% reading seen a week prior, according to the CME’s FedWatch tool.
