US stocks traded mixed on Monday as investors assessed the possibility of renewed tensions between the United States and Iran, while optimism surrounding artificial intelligence supported some technology shares. A strong revenue outlook from AI company Anthropic helped lift sentiment toward the tech sector.
As of 10:30 a.m. Eastern Time, the S&P 500 slipped 0.1%, the Dow Jones Industrial Average was down 0.3%, and the Nasdaq Composite was virtually unchanged.
At the opening bell, the Dow Jones Industrial Average fell 69.3 points, or 0.13%, to 53663.11. The S&P 500 rose 4.9 points, or 0.06%, to 7790.68, while the Nasdaq Composite rose 55.5 points, or 0.21%, to 26784.652.
Iran could escalate tensions in the Strait of Hormuz and across the wider region if diplomatic efforts with the US fail, according to Reuters citing a senior Iranian official.
The comments pointed to a potential shift in Tehran’s policy toward a more offensive rather than defensive approach.
Oil prices also moved higher amid the geopolitical concerns. Brent crude rose 0.4% to $88.87 a barrel, reflecting investor worries that any escalation in the region could threaten energy supplies and shipping through the Strait of Hormuz.
Meanwhile, investors are preparing for a busy week of corporate earnings, with major retailers including Home Depot, Target and Walmart scheduled to report their results. Their earnings and management commentary are expected to offer fresh clues about the strength of US consumer spending and the broader economy.
The focus on consumers comes after data released last week showed that US shoppers spent less than expected at retailers last month, compared with June, raising questions about the resilience of consumer demand.
In the bond market, US Treasury yields edged higher. The yield on the benchmark 10-year Treasury note rose to 4.70%, compared with 4.68% at Friday’s close.
Key Stock Movers
Chipmakers were among the notable gainers, with Micron Technology shares rising 4.5% and Sandisk advancing 6.7%. Nvidia gained 0.2% in early trading, with investors already looking ahead to the chipmaker’s upcoming earnings report next week.
US-listed shares of Vista climbed 5.3% after billionaire investor Peter Thiel disclosed a 1% stake in the Latin American oil company.
Alphabet shares slipped 0.7% despite news that Berkshire Hathaway had increased its investment in Google’s parent company.
L3Harris Technologies declined 3.2% after the defense contractor announced that Christopher Kubasik had stepped down as chief executive officer and chairman.
Constellation Brands dropped 4.8% after Berkshire Hathaway disclosed that it had sold its entire holding in the company, whose brands include Modelo beer and Robert Mondavi wine.
Bullion
Gold prices rose on Monday, supported by a weaker US dollar and fading expectations of a Federal Reserve rate hike.
By 09:25 a.m. EDT (1325 GMT), spot gold was up 0.28% to $4,387.95 per ounce. US gold futures for December delivery edged 0.2% higher to $4,444.40.
Among other metals, spot silver rose 1% to $65.31 per ounce. Platinum gained 0.8% to $1,762.43 per ounce while palladium climbed 1% to $1,326.26 per ounce.
