The S&P 500 (^GSPC +1.18%) fell 0.24% to 7,109.14, the Nasdaq Composite (^IXIC +2.07%) slipped 0.26% to 24,404.39, and the Dow Jones Industrial Average (^DJI +0.59%) edged down 0.01% to 49,442.56 as optimism about U.S.-Iran conflict de-escalation faltered.
Market movers
WTI crude jumped almost 6% to close at $88.85 per barrel, causing energy names to climb while travel stocks fell. American Airlines (AAL +0.28%) fell after it rejected a merger approach from United Airlines (UAL 0.68%) on Friday.
In tech, Atlassian (TEAM +0.66%) rallied after falling by almost 65% in the past year, potentially as investors look for opportunities. AST SpaceMobile (ASTS +21.47%) slumped after a flawed satellite launch.
Apple (AAPL 0.76%) fell in after-hours trading on news that CEO Tim Cook would step down in September. Marvell Technology (MRVL +3.98%) gained on reports of a possible artificial intelligence (AI) chip deal with Alphabet (GOOG +4.96%).
What this means for investors
After last week’s new highs, markets lost steam today on concerns of renewed tensions in the Middle East. The current U.S.-Iran ceasefire is set to end on Wednesday evening, and further headline-driven volatility is likely. Transit through the crucial Strait of Hormuz remains heavily restricted, despite Friday’s brief hopes of a reopening.
Some economists fear a prolonged disruption to the oil supply could slow global growth. Wall Street will be watching upcoming earnings from heavyweights for signs that high energy prices are squeezing margins. Tesla (TSLA +8.49%), UnitedHealth (UNH 2.00%), GE Aerospace (GE +1.28%), and AT&T (T 3.96%) are all due to report this week.
