The S&P 500 Index swiveled between gains and losses before finishing with a dip of 0.1%, marking its second loss since setting an all-time high last week. The tech-heavy Nasdaq 100 Index fell 0.5% after both indexes experienced significant volatility throughout Monday's session. According to Associated Press, the Dow Jones Industrial Average added 159 points, or 0.3%, showing mixed performance across major U.S. equity indices. Oil prices experienced particularly volatile trading, with Brent crude oil going from a high of $112 overnight to below $107 in the morning before turning back higher, creating additional uncertainty for global stock markets. After settling at $112.10 per barrel, Brent's price then fell back below $109 after President Donald Trump said late in the day that he would hold off on a military attack on Iran planned for Tuesday, at the request of allies in the region.
Micron Technology Inc. lost 6% as investors monitored potential labor action at rival Samsung Electronics that could disrupt memory-chip supplies. As reported by Axios, Nvidia Corp. fell 1.3% ahead of results due later this week. Jefferies trader Jeffrey Favuzza noted that softness in equities and elevated bond yields sets up tech momentum stocks for declines ahead of Nvidia's late Wednesday results. The semiconductor sector weakness contributed significantly to the overall market decline, with the SOX index experiencing the steepest drop among major indices.
According to Associated Press, President Donald Trump said late in the day that he would hold off on a military attack on Iran planned for Tuesday, at the request of allies in the region. This development kept alive hopes that a deal to open the Strait of Hormuz may still be possible, though oil prices remained volatile as markets awaited clarity on the situation. The oil price movements created significant market volatility, with Brent crude oil settling at $112.10 per barrel before falling back below $109 after Trump's announcement. The uncertainty about how long the Iran war will keep the Strait of Hormuz closed and prevent oil tankers from delivering crude continues to influence global energy markets worldwide.
The yield on the 10-year Treasury got as high as 4.63% before falling back to 4.59%, where it was late Friday, according to Associated Press. The yield on the 10-year Japanese government bond rallied toward its highest level since the late 1990s. Climbing yields have cranked up pressure on economies and stock markets worldwide, with higher yields making it more expensive for households and businesses to borrow, including U.S. homebuyers facing higher mortgage rates. Higher interest rates could also make it more difficult for companies to borrow to build data centers for artificial-intelligence technology, which has been driving much of the U.S. economy's growth. Yields worldwide have been climbing on fears about higher inflation caused by higher oil prices, which could push central banks not only to abandon the possibility of cutting interest rates but also consider hiking rates.
Regeneron Pharmaceuticals dropped 9.8% to help lead the U.S. stock market lower after reporting discouraging data from a trial of a treatment for melanoma. NextEra Energy fell 4.6% after agreeing to buy Dominion Energy in an all-stock deal to create the world's largest regulated electric utility by market value, with Dominion rallying 9.4%. Delta Air Lines finished essentially flat after swinging up and down through the day because of oil prices, though it got a boost early following news that Berkshire Hathaway bought more than $2.6 billion of the airline's stock. Boston Scientific climbed 6.2% after saying it would spend $2 billion of its previously announced $5 billion stock buyback program by the end of June. This upcoming week will offer little in terms of data on the U.S. economy, but a heavily anticipated report on Nvidia's latest quarterly results will arrive Wednesday, with the chip company having routinely blown past analysts' expectations each quarter.
