The S&P 500 rose to a new record high on Monday, but gains were limited as stalled peace talks with Iran and fresh escalation in the Strait of Hormuz fueled oil prices.
The broad market index was last up 0.1% after hitting a new all-time high in the session. The Nasdaq Composite also gained 0.2% to hit a new all-time high in one day. The Dow Jones Industrial Average fell by 62 points, or 0.1%.
President Donald Trump on Saturday scrapped plans to send US special envoy Steve Witkoff and Jared Kushner to Pakistan for Iran-related ceasefire talks, noting that talks could take place over the phone.
“Too much time spent traveling, too much work!” the president wrote in a post on Truth Social. “No one knows who’s in charge, including them. Also, we have all the cards; they have nothing! If they want to talk, all they have to do is call!!!”
Iranian Foreign Ministry spokesman Esmaeil Baqaei said that no meeting is currently planned between Tehran and Washington.
Oil prices were higher on Monday as the US and Iran remained stalled. West Texas Intermediate crude futures rose 2.09% to settle at $96.37 a barrel, while international benchmark Brent crude futures rose 2.75% to settle at $108.23 a barrel.
Indeed, the Axios report states that Iran has offered the US a new proposal to reopen the Strait of Hormuz and end the war, suggesting a delay in nuclear talks, SEEbiz reports.
“While this is a moderate negative, we still think the conflict is on a path of de-escalation,” Vital Knowledge’s Adam Crisafulli said in a note.
Although investors have begun to look beyond the war, with the market coming off a week filled with multiple record highs, the war is still “in play,” according to Falcon Wealth’s Gabriel Shahin. That’s even as earnings season continues after an upbeat start.
“Oil prices will continue to be very important, because … that’s a key driver,” the CEO and founder said, noting that stability should only exist “once the strait is brought more under control.” He continued: “That’s why I still think Iran is the number one priority.”
However, it’s possible “that we might have some peace just for the next seven days,” depending on how the week’s quarterly results play out. This week is the busiest in the reporting season, and the publication of five companies from the “Magnificent Seven” is planned in particular.
