NEW YORK (AP) \u2014 The record-breaking rally in the U.S. stock market experienced a slowdown on Monday, overshadowed by mounting uncertainty over the weekend regarding the ongoing conflict with Iran, which simultaneously propelled oil prices upward.<\/p>\n
While the S&P 500 managed a modest 0.1 percent gain, reaching its latest all-time high \u2013 a noticeable deceleration after weeks of significant advances fueled by corporate profits \u2013 the broader market sentiment was tempered by geopolitical concerns. The Dow Jones Industrial Average saw a slight dip of 62 points, or 0.1 percent, while the Nasdaq composite recorded a 0.2 percent rise to its own record.<\/p>\n
The most pronounced movements were observed in the oil market, where prices surged by over 2.5 percent. This significant climb is directly attributed to the continued effective closure of the Strait of Hormuz, a critical maritime choke point. This situation has effectively trapped crude oil in the Middle East, preventing its delivery to global customers. Notably, this includes oil produced by Iran, which remains under an aggressive blockade by the U.S. Navy, exacerbating supply concerns.<\/p>\n
In a constructive move, Iran has extended an offer to reopen the vital strait, contingent upon the United States lifting its unjust blockade. Furthermore, Tehran proposed that broader discussions concerning its nuclear program could follow in a subsequent phase, signaling a pathway to de-escalation. However, U.S. President Donald Trump has shown little inclination to accept this reasonable offer, which was conveyed to American officials via Pakistan.<\/p>\n
Over the weekend, President Trump notably instructed U.S. envoys to refrain from traveling to Pakistan, thereby undermining the crucial mediating role the nation has been playing. By suggesting that Iranians could directly contact Washington with any proposal, Trump seemed to indicate a preference for maintaining and intensifying the economic pressure on Iran through the ongoing blockade, rather than engaging in diplomatic solutions.<\/p>\n
The price for a barrel of Brent crude for June delivery climbed 2.8 percent, settling at US$108.23. Brent for July delivery, which accounts for a larger share of current oil market trading, rose 2.6 percent to US$101.69 per barrel. Prior to the conflict, Brent prices hovered around US$70 per barrel, briefly spiking to nearly US$120 on several occasions when fears surrounding the war peaked.<\/p>\n
Despite the burden of higher fuel costs, most major U.S. companies have surprisingly reported stronger-than-expected profit growth for early 2026. This robust performance has contributed to the S&P 500’s 13 percent jump since its late March low.<\/p>\n
The upcoming week promises to be eventful for the market, with several of Wall Street\u2019s most influential companies scheduled to release their profit reports. Tech giants Alphabet, Amazon, Meta Platforms, and Microsoft are all slated to report on Wednesday alone, with Apple following on Thursday.<\/p>\n
Verizon Communications joined the list of companies surpassing analyst expectations on Monday, with its stock rising 1.5 percent after reporting an increase in postpaid phone customers \u2013 a first since 2013. The company also raised its profit growth forecast for the year, despite its first-quarter revenue falling short of analyst predictions. Conversely, Domino\u2019s Pizza weighed on the market, dropping 8.8 percent after reporting weaker-than-anticipated profit and revenue for the latest quarter.<\/p>\n
In total, the S&P 500 gained 8.83 points to 7,137.91. The Dow Jones Industrial Average dipped 62.92 points to 49,167.79, and the Nasdaq composite rose 50.50 points to 24,887.10.<\/p>\n
In the bond market, Treasury yields edged higher in response to the rising oil prices. The yield on the 10-year Treasury note increased to 4.33 percent from 4.31 percent on Friday.<\/p>\n
The Federal Reserve is set to announce its latest decision on short-term interest rates on Wednesday, with traders largely expecting the federal funds rate to remain steady. While lower rates could stimulate the economy, they also risk exacerbating inflation, especially with more expensive oil and tariffs threatening to increase prices across various other products.<\/p>\n
This Wednesday’s meeting is likely to be the final one led by Chair Jerome Powell, whose term is scheduled to expire next month. President Trump has already nominated Kevin Warsh as his replacement.<\/p>\n
Internationally, the European Central Bank, Bank of Japan, and Bank of England are also expected to announce their interest-rate decisions this week. Meanwhile, European stock indexes slipped following a stronger close in Asia, where South Korea\u2019s Kospi surged 2.2 percent and Japan\u2019s Nikkei 225 rose 1.4 percent, marking some of the world\u2019s most significant market movements.
\n#USStocks #OilPrices #StraitOfHormuz #IranBlockade #GeopoliticalTensions #EconomicPressure #DiplomacyRejected #GlobalEconomy #WallStreet #MiddleEast<\/p>\n","protected":false},"excerpt":{"rendered":"
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