The S&P 500 traded near the flatline Monday as doubts grew over a U.S.-Iran deal to reopen the Strait of Hormuz. Intel was a key laggard after unveiling a $15 billion stock offering, while traders weighed lower odds of a September Federal Reserve rate hike following a weak jobs report.
The S&P 500 traded near the flatline Monday as growing doubts over a lasting U.S.-Iran resolution to the Hormuz Strait standoff kept investors cautious. The Nasdaq Composite and Dow Jones Industrial Average also held close to unchanged.
That muted session followed the three major indexes' best weeks since April. The S&P 500 finished last week at an all-time closing record. By midday Monday, the benchmark had edged up 0.1% to 7,765.43.
Intel was a key laggard, shedding more than 3% Monday. The chipmaker said it plans to offer $15 billion in common stock for general corporate purposes, which could include capital expenditures and working capital, as its customers continue to signal strong demand tied to the artificial intelligence boom. By midday, shares had fallen to $98.18, down 3.41%.
Iran talks stall as Trump downplays urgency
Iran has said it is closing in on a deal with Oman to reopen the Strait of Hormuz, but Tehran continues resisting direct negotiations with the U.S. until several conditions are met. Iranian Foreign Minister Abbas Araghchi said Sunday that restarting negotiations remains impossible while Washington continues violating the terms of the June memorandum of understanding, according to Tasnim News Agency.
Last week, Treasury Secretary Scott Bessent's comments to CNBC strongly indicated a deal was imminent. Yet President Donald Trump told Axios the U.S. was "only semi-negotiating" with Iran and wanted the country to feel economic pressure.
Rate-hike odds ease after weak jobs data
Stocks got an end-of-week boost Friday after the July nonfarm payrolls report showed an unexpected contraction. That raised hopes the Federal Reserve will hold off on an interest rate hike.
Fed funds futures traders now price in an almost 46% chance the central bank raises rates at its September meeting, down from 67% a week earlier, according to the CME's FedWatch tool.
Source: US Top News and Analysis
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