US Stock Market Today: Wall Street Edges Lower as Iran Tensions and Earnings Season Shape Market Sentiment

Wall Street's main indexes moved slightly lower on Monday as investors evaluated earnings reports and geopolitical developments involving the US and Iran discussions. Trading stayed cautious as oil prices increased and major companies prepared to release quarterly results. 

Market sentiment reflected mixed sector performance, while attention shifted toward policy meetings and upcoming economic data releases across global markets.

Wall Street Movement As Geopolitical Signals Shape Trading

Wall Street indexes traded slightly lower, with the Dow Jones Industrial Average down 0.05% at 49,205.53. The S&P 500 slipped 0.07% to 7,159.92, while the NASDAQ Composite fell 0.27% to 24,762.66. 

Investors reacted to stalled US–Iran discussions. "There doesn't seem to be any progress on a resolution," said Peter Andersen of Andersen Capital Management, noting continued uncertainty linked to the geopolitical situation.

Political factors also shaped trading direction. US President Donald Trump canceled a planned envoy's travel to Pakistan related to ceasefire talks. Iranian officials stated no meeting with Washington is scheduled. 

Meanwhile, the Strait of Hormuz remained effectively closed, affecting oil transport routes. Brent crude rose around 1.7%, staying above $100 per barrel. Consequently, equity markets maintained cautious positioning due to energy supply pressure.

Earnings Season Draws Focus Across Major US Companies

Earnings season gained pace as companies representing about 44% of the S&P 500 market capitalization are set to report this week, according to Raymond James. Of 139 companies already reported, 81.3% exceeded expectations compared with a prior average of 78.1% based on LSEG data. 

In addition, major firms including Apple, Amazon, Meta Platforms, and Microsoft are expected to release results later in the week, increasing attention on corporate performance.

Stock movements remained mixed across sectors. Qualcomm gained 2.2% after reports of a chip development collaboration with MediaTek. Meanwhile, Microsoft declined 1.2% after OpenAI adjusted cloud access arrangements. 

Domino’s Pizza dropped after weaker results, whereas Verizon advanced following subscriber growth. Adam Crisafulli stated, "While this is a modest negative, we continue to think the conflict remains on a path of de-escalation," referring to ongoing geopolitical risk factors affecting sentiment.

Oil Market Reacts to Strait of Hormuz Supply Conditions

Oil markets moved higher as Brent crude increased about 1.7%, trading above $100 per barrel. West Texas Intermediate also rose above $97 per barrel. At the same time, the Strait of Hormuz remained effectively closed, limiting crude transport from the Middle East. Supply concerns continued influencing energy pricing as shipping disruptions kept pressure on global oil flows.

Iran proposed reopening the Strait of Hormuz if US restrictions were lifted, while suggesting nuclear discussions could be delayed. However, US officials have not accepted the proposal. 

Trump stated, "Too much time wasted on traveling, too much work!" and indicated communication could continue remotely. Moreover, Pakistan’s mediation role weakened after the canceled envoy's travel, leaving discussions without confirmed meetings.

Federal Reserve Outlook and Global Policy Decisions

Federal Reserve officials are scheduled to meet in Washington, with expectations that interest rates will remain unchanged. The meeting may also mark the final session chaired by Jerome Powell before his term ends next month. 

Meanwhile, other central banks, including the European Central Bank, Bank of Japan, and Bank of England, are set to announce policy decisions this week, as inflation trends remain closely monitored alongside energy price shifts.

Treasury yields stayed stable, with the 10-year note at 4.32%. A Reuters poll indicated expectations of no rate cuts for at least six months. In addition, Jefferies economist Thomas Simons said, "the path appears clearer for Warsh's confirmation ahead of the next policy meeting." Investors continued assessing monetary direction alongside leadership transition at the central bank and broader macroeconomic conditions.

Also Read: US Stock Market Today: Dow, S&P 500, NASDAQ Rise as Trump Extends US-Iran Ceasefire and Earnings Lift Sentiment