The S&P 500 held close to flat on Monday, caught between renewed doubts over a deal to reopen the Strait of Hormuz and a slide in Intel shares after the chipmaker announced a $15 billion stock offering. The index remains just off Friday's record close, with investors now turning to this week's inflation data and a fresh round of semiconductor earnings.
The S&P 500 traded down 0.1% on Monday, holding near Friday's all-time closing high. The Nasdaq Composite fell 0.5% and the Dow Jones Industrial Average dropped 110 points, or 0.2%.
Intel's stock sale drags on chipmakers
Intel fell 3% after saying it would offer $15 billion in common stock, saying the proceeds could go toward general corporate purposes, including capital spending. Nvidia and Apple were also among the session's laggards, dropping almost 3% and more than 2%, respectively.
Hormuz deal remains elusive
Iran said it is closing in on a deal with Oman to reopen the Strait of Hormuz, but Tehran continues to resist direct negotiations with the U.S. until several conditions are met. President Trump told Axios on Sunday the U.S. was “only semi-negotiating” with Iran.
Oil prices jumped on the uncertainty. West Texas Intermediate futures rose about 4% to around $81 a barrel. Brent crude climbed 4% to around $87.
Earnings and inflation data ahead
The three major indexes are coming off their best weeks since April. That rally pushed the S&P 500 and the Dow to record highs last week.
Stocks got a late boost Friday when a report showed an unexpected contraction in July payrolls, which raised hopes the Federal Reserve will hold off on rate hikes. Fed funds futures now price almost a 50% chance of a September hike, down from 67% a week earlier, according to the CME's FedWatch tool.
J.P. Morgan has raised its year-end target for the S&P 500 to 8,000 from 7,800. So far, 85.1% of the 436 S&P 500 companies that have reported this quarter have beaten estimates, against a typical 67% since 1994, according to LSEG data. Investors are now watching this week's inflation data from the Consumer Price Index report, alongside earnings from Applied Materials, Lumentum and Cisco, seen as a check on demand for AI-related hardware.
Sources: CNBC, Reuters (via Investing.com), Crypto Briefing
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