Wall Street Mixed Amid Falling Oil Prices and Tech Companies’ Influence

Wall Street closed with mixed results on Monday as oil prices fell following eased tensions between the U.S. and Iran, and negotiations to end the war resumed. The S&P 500 saw a minor increase of less than 0.1% after fluctuating between gains and losses throughout the day. This index had faced two consecutive weekly declines. Meanwhile, the Dow Jones Industrial Average rose by 0.5%, while the Nasdaq composite dropped by 0.2%, marking its fourth straight loss.

All three major stock indexes are expected to end the month in negative territory. The S&P 500 and Nasdaq are poised for their second successive monthly losses.

“This is a week with more than its fair share of potential surprises, good and bad,” noted Chris Larkin, Managing Director of Trading and Investing at E-Trade from Morgan Stanley.

Oil prices, which had surged to over $100 a barrel last week amid heightened conflict, reversed direction. Brent crude, the global standard, fell 6.3%, settling at $85.87 a barrel for October delivery. U.S. crude oil for September delivery declined by 7.5%, closing at $82.61 a barrel. The war has disrupted traffic in the vital Strait of Hormuz, affecting the global economy by increasing gasoline prices and shipping costs.

Markets in Europe and Asia closed higher, contrasting the mixed U.S. market results. Bond yields also dipped, with the yield on the 10-year Treasury dropping to 4.65% from 4.69% late Friday.

Technology companies were central to the market’s shifts. Nvidia experienced a 5% decline and Micron Technology fell 2.3%. However, Microsoft and Apple saw increases of 1.9% and 1.2%, respectively. These companies significantly influence the market due to their substantial valuations.

Alongside these fluctuations, communications stocks performed well. Alphabet, Google’s parent company, rose 2.1%, Charter Communications jumped 6.7%, and Comcast advanced 2.3%. Additionally, credit card issuers and payment processors gained, with American Express climbing 2.8%, Capital One Financial adding 2.1%, Visa rising 1.9%, and Mastercard going up 2.2%.

In Asia, CXMT, a Chinese memory chipmaker, made an impressive debut on the Shanghai stock exchange, becoming China’s most valuable listed company with an estimated market capitalization of 3.3 trillion yuan (nearly $490 billion).

The S&P 500 concluded the day by adding 1.20 points to reach 7,413.18. The Dow Jones increased by 262.83 points to 52,210.08, and Nasdaq dropped 43.74 points to 24,932.08.

This week is pivotal for Wall Street with numerous updates on the economy and company earnings, including consumer confidence reports on Tuesday and inflation data on Thursday. A significant focus is on the Federal Reserve, which is scheduled to update its interest rate policy on Wednesday. The Fed faces challenges from rising inflation due to ongoing geopolitical conflicts, alongside new U.S.-imposed global tariffs that may aggravate inflation further.

Wall Street speculates a near 36% chance the Fed will raise interest rates this week. Rate hikes typically curb inflation by making borrowing costlier, thus slowing economic growth. The Fed has maintained steady rates so far this year while monitoring inflation trends.

Persistently high inflation impacts household budgets and spending due to elevated fuel costs. Gas expenses are straining finances, potentially leading to reduced expenditure on clothing and travel.

Investors eagerly await corporate earnings results for insights into economic health. Key reports include Sherwin-Williams, Boeing, and Visa on Tuesday. Starbucks and Chipotle are set for Wednesday, while Microsoft, Amazon, and Apple, essential players in the tech sector, will reveal their figures mid-week.

AP Business Writer Elaine Kurtenbach contributed to this report.