The Dow Jones Industrial Average slipped a fraction Monday as oil prices jumped on stalled U.S.-Iran talks. The S&P 500 eked out a small gain while the Nasdaq composite slipped 0.2%, and traders now turn to Wednesday's CPI report for the next catalyst.
The Dow Jones Industrial Average fell a fraction Monday as crude oil prices surged on renewed friction between Washington and Tehran. The S&P 500 bucked the move with a small gain, while the Nasdaq composite slipped.
Dow decliners offset by energy gains
Nvidia and Home Depot dropped roughly 3% and 2%, respectively, weighing on the Dow. Chevron and Cisco Systems gained nearly 4% and more than 2%, respectively, to cap the index's losses. The Nasdaq composite slipped 0.2% but stayed well above its moving averages after strong gains earlier this month. Meanwhile, the S&P 500's sectors split, with energy and healthcare posting the best gains and technology and real estate lagging most.
Oil jumps on stalled Iran talks
West Texas Intermediate crude futures jumped more than 4% to around $81.40 a barrel after President Donald Trump told Axios that Washington was negotiating with Iran only partially and wanted Tehran to feel economic pressure. Iran's Foreign Ministry reportedly said talks with Oman about reopening the Strait of Hormuz were ongoing, though the waterway will not fully reopen until the U.S. removes its naval blockade and compensates Tehran, spokesman Esmail Baghaei said.
Treasury yields tick higher
The 10-year Treasury yield picked up 4 basis points to 4.7%.
CPI report looms this week
The next catalyst arrives Wednesday, when the government releases July's consumer price index. The 12-month CPI inflation rate is expected to dip to 3.4% from 3.5% amid lower gas prices, according to FactSet. Core CPI is seen rising 0.2% in July, with tariff rebates potentially helping to keep down price hikes on inflation. The producer price index follows Thursday, with retail sales data due Friday and the University of Michigan's consumer sentiment index after that.
Source: Investor's Business Daily
Trading involves risk.
Risk Disclaimer
