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US stocks traded slightly lower on Monday as investors monitored Strait of Hormuz talks and rising oil prices. Markets also prepared for key inflation data due later this week.
The S&P 500 slipped 0.07% to 7,752.42 shortly after the opening bell. The Dow fell 72.88 points, or 0.13%, to 53,964.05. Meanwhile, the NASDAQ declined 0.23% to 26,629.06.
Iran said it was nearing an agreement with Oman on new shipping lanes through the Strait of Hormuz. However, Tehran repeated several conditions for fully reopening the vital waterway.
Iranian Foreign Minister Abbas Araghchi ruled out direct talks while the dispute over a June agreement persists. He said there was “no possibility of restarting negotiations” under current conditions.
President Donald Trump also lowered expectations for a rapid agreement. He told Axios that Washington was ‘only semi-negotiating’ with Iran and wanted Tehran to face economic pressure.
Last week, Treasury Secretary Scott Bessent indicated that a Hormuz deal could arrive within days. Investors now face greater uncertainty after Iran tied a reopening to US concessions.
Oil prices gained as traders questioned the prospects for a near-term shipping agreement. West Texas Intermediate crude rose 2.4% to $80.03 per barrel.
Brent crude also climbed 2.4% to $85.53 per barrel. Higher oil prices supported energy shares while reviving concerns about inflation and future interest-rate decisions.
The S&P 500 energy sector gained 2.6%, making it one of Monday’s strongest market groups. Six of the index’s 11 sectors traded lower during the morning session.
Real estate and consumer staples recorded some of the weakest performances. Declining stocks outnumbered advancing shares by a 1.5-to-1 ratio on the New York Stock Exchange.
Technology shares moved lower as Intel and Apple came under pressure. The S&P 500 information technology sector lost about 0.4% during early trading.
Intel shares dropped 4.8% after the chipmaker launched a $15 billion common stock offering. The planned sale added pressure to a company pursuing a wide turnaround strategy.
Apple declined 2.4% after Jefferies downgraded the stock. The two declines helped pull the NASDAQ below Friday’s closing level.
Elsewhere, eBay shares fell 3.9% following a report about GameStop’s proposed acquisition. Bloomberg reported that GameStop CEO Ryan Cohen was considering withdrawing the company’s $56 billion bid.
Berkshire Hathaway moved against the broader market trend after reporting stronger second-quarter operating results. Its Class A shares gained about 2.3% during morning trading.
Operating earnings increased 16%, supported by gains across Berkshire’s energy, railroad and other businesses. Those results offset weaker performance from the company’s insurance underwriting operations.
Investors also tracked Berkshire’s higher capital spending under CEO Greg Abel. The company repurchased about $4.5 billion of its shares during the second quarter.
Berkshire bought nearly $20 billion more stocks than it sold, ending a 14-quarter run as a net seller. Its cash holdings fell to $365.5 billion from $397.4 billion in March.
Monday’s moves followed a strong week for US stocks. The S&P 500 closed at a record on Friday, while the Dow also reached an all-time high.
A contraction in July payrolls reduced expectations for a September interest-rate increase. CME FedWatch data placed the probability near 44%, down from 67% one week earlier.
Investors now await July’s consumer inflation report on Wednesday. Economists expect annual inflation of 3.4%, compared with 3.5% in June.
Corporate earnings also offer support to the market. LSEG data shows that 85.1% of 436 reporting S&P 500 companies have beaten estimates.
JPMorgan raised its year-end S&P 500 target to 8,000 from 7,800, citing earnings and artificial intelligence demand. Applied Materials and Cisco rank among the companies scheduled to report this week.
Investors will focus on Wednesday’s July inflation report for direction on the Federal Reserve’s September rate decision. Applied Materials and Cisco will also report earnings this week.
Meanwhile, Hormuz negotiations and oil prices may shape energy shares and wider market trading. Further gains in crude could renew inflation concerns, while progress on reopening shipping routes could ease pressure.
Also Read: Stock Market Update: Nifty 50 Opened 0.04% Higher, Sensex Started Flat Amid Rise in Brent Crude
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