.png){kind=logo}
US stocks traded mixed on Monday as investors reacted to fresh concern over the Middle East conflict, higher oil prices and company-specific moves across logistics, retail, and travel stocks. The Dow Jones Industrial Average fell 0.47%, while the S&P 500 slipped 0.09%. However, the NASDAQ Composite gained 0.11% as some large technology stocks held firm.
Market sentiment weakened after conflicting reports emerged about a US warship near the Strait of Hormuz. Iranian media claimed that Tehran had forced a US warship to turn back and that missiles had hit the vessel. However, the United States denied the report, which left investors cautious during early trading.
The Dow Jones Industrial Average dropped 230.93 points to 49,268.34 at 09:42 a.m. ET. The S&P 500 fell 6.48 points to 7,223.64, while the NASDAQ Composite added 26.87 points to 25,141.31. The mixed move showed caution across the broader market, even as technology shares helped support the NASDAQ.
Nine of the 11 main S&P 500 sectors traded lower. The energy sector led losses with a 0.7% decline, despite higher crude prices. Declining stocks also outnumbered advancers by a 1.94-to-1 ratio on the New York Stock Exchange and by a 1.1-to-1 ratio on the NASDAQ.
The CBOE Volatility Index rose 0.57 points to 17.56. The move showed rising demand for protection as investors reviewed the risk of further tension near the Strait of Hormuz, a key route for global oil shipments.
Brent crude futures rose 2.2% on Monday and traded above $110 a barrel. West Texas Intermediate also traded higher near $102 a barrel. Oil prices stayed elevated as traders watched the conflict between Washington and Tehran.
The tension followed reports that the US planned to help trapped ships exit the Gulf waterway under a plan called ‘Project Freedom.’ Iran warned that any US interference in the strait would breach the ceasefire between Washington and Tehran.
Mark Malek, chief investment officer at Siebert Financial, said, “I don't believe that the markets have properly priced in the long-term risks that are going to come.” He added, “There are going to be more shoes to drop. And you're going to see it in future earnings,” referring to the pressure from higher oil prices.
FedEx and United Parcel Service fell sharply after Amazon said it was rolling out Amazon Supply Chain Services. The new service opens Amazon’s logistics network to other businesses, adding pressure on major delivery firms.
FedEx shares dropped 6.5%, while UPS fell 7%. The move came as investors assessed whether Amazon’s wider logistics push could take volume from established shipping companies.
Meanwhile, Norwegian Cruise Line dropped 7.7% after cutting its annual forecast due to higher fuel costs. The cruise operator’s update added to concern that expensive oil could weigh on travel, transport, and consumer-facing companies.
eBay shares rose 5.5% after GameStop proposed buying the company for about $56 billion in a cash-and-stock deal. GameStop shares fell 2.4% after announcing the proposal.
The bid added another major corporate story to Monday’s market. Investors also watched Berkshire Hathaway after the company reported that it was a net seller of stocks for the 14th straight quarter. The update drew attention because investors often view Berkshire as a guide to broader market valuations.
Elsewhere, Procter & Gamble fell more than 2%. Home Depot, Walmart, and Apple each fell more than 1%. However, Amazon, Nvidia, and Microsoft traded higher, helping the NASDAQ stay in positive territory.
US equity fund inflows slowed to a six-week low in the week through April 29. LSEG Lipper data showed that investors bought $911 million worth of US equity funds, the smallest weekly net purchase since March 18.
Technology funds still attracted $1.43 billion, extending their run of inflows to four weeks. However, healthcare funds saw outflows of $1.06 billion. US bond funds received $4.87 billion, while money market funds posted a third straight weekly outflow of $13.02 billion.
Meanwhile, the Federal Reserve kept interest rates steady last week. However, three board members voted to remove the central bank’s easing bias, adding uncertainty around the policy path.
Overall, seasonal trading patterns remained in focus as May starts a weaker six-month stretch for stocks.
Also Read: Crypto News Today: Jerome Powell Renovation Probe Dropped by DOJ Ahead of Fed Chair Transition
