U.S. stocks slip as Iran tensions keep oil near $80

U.S. stocks moved lower across the board on Monday as crude oil prices stayed elevated and investors turned cautious over signs that negotiations between the United States and Iran over navigation through the Strait of Hormuz may be stalling. By 10:00 a.m., the Dow Jones Industrial Average was down 78.43 points at 53,958.50 and the Nasdaq Composite had slipped 25.75 points to 26,664.87. The pressure on sentiment came from renewed Middle East geopolitical risk after Iranian state television reported on August 8 that Zolgadr, secretary of Iran's Supreme National Security Council, had set out six conditions for opening the strait, including a permanent cessation of hostilities against Iran and its proxies and the withdrawal of military forces from the surrounding region. Those demands went beyond an earlier memorandum of understanding intended to end the fighting, signaling a tougher Iranian stance, while U.S. President Donald Trump said on August 9 that he would monitor the situation. U.S. crude oil futures hovered near $80 per barrel in morning trading, raising concerns about higher corporate costs and more persistent inflation. Among individual stocks, Chevron rose 2.8% and Cisco Systems gained 2.1%, while Intel fell 4.2% after announcing plans to raise $15 billion, or about 2.4 trillion yen, through a public offering of common stock, prompting worries about earnings per share dilution. Investors are also focused on the July Consumer Price Index (CPI) due on August 12 and the Producer Price Index (PPI) due on August 13, as stronger inflation readings alongside elevated oil prices could revive speculation that the Federal Reserve may shift toward an earlier interest rate hike. For now, the market appears set to remain in a tug-of-war between geopolitical risk and inflation data.

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