The Nasdaq and S&P 500 closed lower on Monday, with declines in Intel and other chipmakers, as investors became less confident about a deal to reopen the Strait of Hormuz. The U.S. President demanded that Iran pay compensation for the people he said it had killed in wars, attacks and protests. Earlier, Iran called for Washington to meet conditions, including recompensing Tehran for the damage caused since the U.S. and Israel launched strikes on its territory more than five months ago.
With investors less optimistic about a resolution of the Middle East crisis, U.S. crude oil jumped about 5% to settle at $82.13 a barrel. Reopening the flow of oil through the Strait could mitigate concerns over heightened energy prices that have spurred inflation worries and led to concerns that central banks would have to raise interest rates. Also weighing on the market were shares of Intel INTC.O INTC.O , which fell 4.1% after the chipmaker said it was planning to raise $15 billion through a share sale.
The S&P 500 notched a record-high close on Friday, helped by much stronger than expected earnings results.
Shares of Nvidia NVDA.O NVDA.O dropped 2.9%. A person familiar with the matter told Reuters on Monday that a group of financial firms, including Apollo Global APO.N APO.N and Blackstone BX.N BX.N , is working with Nvidia to put together a $500 billion funding package for AI infrastructure development. The S&P 500 declined 0.06% to end the session at 7,753.12 points.
The Nasdaq declined 0.32% to 26,605.36 points, while the Dow Jones Industrial Average declined 0.11% to 53,976.04 points.
Reports later this week could offer clues on the Federal Reserve’s monetary policy path. Data on Friday that showed U.S. employers unexpectedly shed 23,000 jobs in July prompted traders to cut odds of a Federal Reserve interest-rate hike in September. Traders now price in a 52% chance of a rate hike in September, according to the CME FedWatch tool.
More quarterly results are on the agenda as well, including reports from semiconductor company Applied Materials AMAT.O AMAT.O and networking equipment maker Cisco CSCO.O CSCO.O . About 85% of the 436 companies in the S&P 500 that have reported earnings so far this period have beaten estimates, according to LSEG data.
Declining issues outnumbered advancers by a 1.39-to-1 ratio on the New York Stock Exchange. There were 297 new highs and 149 new lows on the NYSE. On the Nasdaq, 1,928 stocks rose and 2,841 fell as declining issues outnumbered advancers by a 1.47-to-1 ratio. The S&P 500 posted 20 new 52-week highs and one new low while the Nasdaq Composite recorded 107 new highs and 74 new lows.
Reporting by Caroline Valetkevitch in New York, Avinash P in Bengaluru and Noel Randewich in San Francisco; Additional reporting by Purvi Agarwal in Bengaluru; Editing by Maju Samuel and Matthew Lewis.
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