The S&P 500 (^GSPC 0.24%) fell 0.24% to 7,109.14, the Nasdaq Composite (^IXIC 0.26%) slipped 0.26% to 24,404.39, and the Dow Jones Industrial Average (^DJI 0.01%) edged down 0.01% to 49,442.56 as optimism about U.S.-Iran conflict de-escalation faltered.
Market movers
WTI crude jumped almost 6% to close at $88.85 per barrel, causing energy names to climb while travel stocks fell. American Airlines (AAL 4.22%) fell after it rejected a merger approach from United Airlines (UAL 2.84%) on Friday.
In tech, Atlassian (TEAM +6.83%) rallied after falling by almost 65% in the past year, potentially as investors look for opportunities. AST SpaceMobile (ASTS 5.30%) slumped after a flawed satellite launch.
Apple (AAPL +1.00%) fell in after-hours trading on news that CEO Tim Cook would step down in September. Marvell Technology (MRVL +5.83%) gained on reports of a possible artificial intelligence (AI) chip deal with Alphabet (GOOG 1.18%).
What this means for investors
After last week’s new highs, markets lost steam today on concerns of renewed tensions in the Middle East. The current U.S.-Iran ceasefire is set to end on Wednesday evening, and further headline-driven volatility is likely. Transit through the crucial Strait of Hormuz remains heavily restricted, despite Friday’s brief hopes of a reopening.
Some economists fear a prolonged disruption to the oil supply could slow global growth. Wall Street will be watching upcoming earnings from heavyweights for signs that high energy prices are squeezing margins. Tesla (TSLA 1.98%), UnitedHealth (UNH 0.37%), GE Aerospace (GE 0.17%), and AT&T (T 1.25%) are all due to report this week.
Emma Newbery has positions in Apple and Atlassian. The Motley Fool has positions in and recommends AST SpaceMobile, Alphabet, Apple, Atlassian, GE Aerospace, Marvell Technology, and Tesla and is short shares of Apple. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.