Wall Street’s main indexes opened muted on Monday after a record-setting rally last week, as renewed concerns over stalled US-Iran negotiations pushed oil prices higher and weighed on investor sentiment.
The Dow Jones Industrial Average slipped 56 points, or 0.11%, while the S&P 500 and the Nasdaq Composite also edged down 0.02% and 0.17%, respectively.
The cautious tone followed strong gains in the previous week, when the S&P 500 and Nasdaq Composite each recorded their sixth consecutive week of advances, the longest winning streak for both indices since 2024.
The Dow Jones Industrial Average rose 0.2% during the week, marking gains in five of the last six weeks.
Markets had rallied after a stronger-than-expected US jobs report showed the economy added 115,000 jobs in April, above economists’ expectations of 55,000 jobs.
Both the S&P 500 and Nasdaq closed Friday’s session at record highs.
Oil prices jump as Iran tensions escalate
Investor sentiment turned more cautious after US President Donald Trump rejected Iran’s latest proposal aimed at ending the ongoing conflict.
Iran’s counterproposal reportedly focused on ending the war across all fronts and lifting sanctions on Tehran.
Trump responded on Truth Social, calling the proposal “TOTALLY UNACCEPTABLE!”
The comments renewed fears that the conflict, now in its 10th week, could continue disrupting shipping activity through the Strait of Hormuz, a key global energy trade route.
Oil prices moved sharply higher following the developments.
US West Texas Intermediate crude futures rose around 2% to above $97 per barrel, while Brent crude climbed more than 2% to above $103 per barrel.
The rise in oil prices pressured airline stocks, as investors worried about the impact of higher fuel costs on profit margins.
Shares of Southwest Airlines, Delta Air Lines, Alaska Air, and United Airlines declined between 1.2% and 2.9%.
Inflation data and Trump-Xi meeting in focus
Investors are now turning their attention to key economic data due later this week, particularly the April consumer price index and producer price index reports.
The inflation readings are expected to provide insight into how rising energy prices and geopolitical tensions are affecting the broader economy.
Market participants will also monitor monthly retail sales data for signs of consumer resilience.
In addition to economic indicators, investors are closely watching a planned meeting between Trump and Chinese President Xi Jinping later this week.
The leaders are expected to discuss Iran, Taiwan, artificial intelligence, nuclear weapons, and a possible extension of a critical minerals agreement.
The developments come as the first-quarter earnings season begins to slow after stronger-than-expected corporate results, particularly from technology companies, helped lift markets to fresh highs.
Corporate movers draw attention
Among individual stocks, fertiliser producer Mosaic fell 3.2% in trading after withdrawing its annual phosphate production forecast.
Fox Corp gained 3.4% after reporting third-quarter revenue that exceeded Wall Street estimates.
Intel shares rose 2.17%, extending gains after surging 14% on Friday following reports of a preliminary chipmaking agreement with Apple.
Investors are also awaiting upcoming earnings from major companies, including Cisco and Applied Materials, this week, while Nvidia and Walmart are scheduled to report later in the month.
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