The S&P 500 closed almost flat on Monday, slipping from Friday's record high as doubts grew over a U.S.-Iran deal to reopen the Strait of Hormuz. Intel's $15 billion stock sale dragged chipmakers lower, while oil jumped more than 5% on the renewed uncertainty.
Monday's close left the S&P 500 down 0.06% at 7,753.11, a day after the index closed at an all-time high. The Nasdaq Composite declined 0.32% to 26,605.36, and the Dow Jones Industrial Average fell 60.95 points, or 0.11%, to 53,975.98.
Intel's share sale drags chipmakers lower
Intel led the market's laggards, falling 4% after announcing a $15 billion common stock offering to fund general corporate purposes, including capital spending. Nvidia and Apple also weighed on the index, dropping 2.9% and 1.5%, respectively. On the New York Stock Exchange, declining issues outnumbered advancers by a 1.39-to-1 ratio.
Oil jumps as Hormuz deal doubts grow
Crude prices surged as traders lost confidence that Washington and Tehran will soon reach a deal to reopen the Strait of Hormuz. U.S. West Texas Intermediate crude settled up about 5.1% at $82.13 a barrel, while Brent crude settled up 5% at $87.72.
Iranian Foreign Minister Abbas Araghchi said Tehran is not currently in direct talks with the U.S. to end the conflict, even as Washington maintained a deal is near. According to Reuters: "It's record margins and record earnings", said Tom Hainlin, an investment strategist at U.S. Bank Wealth Management, pointing to strong corporate results even as Middle East tensions swing sentiment.
Rate-hike odds ease after Friday's record
Stocks rallied into Friday's close after July's nonfarm payrolls report showed an unexpected contraction, raising hopes the Federal Reserve will hold off on a rate hike. Fed funds futures traders now price in almost a 52% chance of a September rate increase, down from 67% a week earlier, according to the CME FedWatch tool. Earnings have stayed a bright spot: about 85% of the 436 S&P 500 companies that have reported so far this season have beaten estimates.
Sources: CNBC, Investing.com
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