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Stocks dip as Strait of Hormuz deal hopes fade and Intel falls
U.S. crude jumped about 5% to $82.13 a barrel, while traders cut odds of a September Fed rate hike to 44% after July hiring unexpectedly fell by 23,000 jobs.
U.S. stocks edged lower on Monday as hopes for an imminent deal to reopen the Strait of Hormuz faded, alongside weakness in Intel shares, according to Reuters.
Crude oil climbed about 5% to settle at $82.13 a barrel. With energy flows through the strait potentially easing, investors said the main market concern remains elevated oil prices feeding inflation worries and rate-hike expectations.
Intel was down about 3% after the company said it was planning to raise $15 billion through a share sale. Market participants also pointed to the Iran conflict as a swing factor for risk sentiment, even as recent gains in the S&P 500 and Dow had been driven by stronger than expected earnings.
Major U.S. indexes fell modestly, the Dow dropped 153.66 points, or 0.28%, and the S&P 500 slid 7.12 points, or 0.09%, while the Nasdaq Composite fell 103.48 points, or 0.39%. Traders are looking ahead to data later this week for clues on the Federal Reserve’s path after Friday’s jobs report showed employers shed 23,000 jobs in July, leaving a 44% chance of a September hike priced in by the CME FedWatch tool. Reuters also noted that about 85% of the 436 S&P 500 companies that have reported earnings so far this period have beaten estimates, based on LSEG data.
Latest closeWTI crude $78.07 ▲3.8%|S&P 500 7,709.96 ▼0.2%|Nasdaq Comp. 26,348.35 ▼0.1%