Stan Choe
Updated ,first published
A record-breaking rally in the US stock market eased after uncertainty grew over the weekend about what will happen next in the Iran war, while oil prices rose.
The S&P 500 rose 0.1 percent to an all-time high, the lowest change following weeks of strong gains driven by strong corporate earnings reports and hopes that the economy can avoid further deterioration due to the war. The Dow Jones fell 62 points, or 0.1 percent, while the Nasdaq composite rose 0.2 percent to its own record.
The Australian share market is set to retreat, with futures at 6.23am AEST pointing to a fall of 56 points, or 0.6 per cent, at the open. Part of the ASX has decreased by 0.2 percent on Monday. The Australian dollar is up 0.5 percent at US71.48¢.
The moves were strongest in the oil market, where prices rose more than 2.5 percent as tankers found the Strait of Hormuz still closed. That’s keeping crude stuck in the Middle East and away from customers around the world, including oil produced by Iran that is blocked by the US Navy.
Iran has offered to reopen the strait if the US ends its blockade, while suggesting that discussions on the broader issue of its nuclear program will come at a later stage. But US President Donald Trump seems not to accept the offer, which was passed on to the Americans by Pakistan.
Over the weekend, Trump told the US delegation not to go to Pakistan, which has played an important mediating role. By saying the Iranians can call Washington with any proposal, Trump seemed to signal that he is content to continue trying to squeeze Iran with restraint.
The price of a barrel of Brent crude for June delivery rose 2.8 percent to settle at $US108.23. Brent for July delivery, the most traded in the oil market, rose 2.6 percent to $101.69 a barrel.
Brent prices were around US$70 a barrel before the war and have briefly risen to around $120 several times as fears about war have grown.
Even with more expensive fuel bills, many of America’s biggest companies have still been reporting profit growth in early 2026 that is stronger than analysts had expected. That has helped the S&P 500 jump 13 percent since a slump in late March.
This coming week could be a hot one for the market, with several of Wall Street’s most influential stocks set to report earnings. Alphabet, Amazon, Meta Platforms and Microsoft are all scheduled to report only on Wednesday. Apple will report on Thursday.
Immediately, it was announced that Microsoft is losing exclusive access to OpenAI technology, clearing the way for the ChatGPT maker to sell its products on rival cloud platforms in a major shift to one of the most important alliances of the intelligence age. The revised tie-up, announced jointly by the companies on Monday, continues with Microsoft as OpenAI’s main cloud partner and license of the startup’s intellectual property until 2032. It also paves the way for OpenAI to deploy its designs to Amazon.com’s cloud division, without any technical modifications.
Verizon Communications joined the list of companies topping analysts’ expectations on Monday, with its shares rising 1.5 percent after the company said it added more postpaid phone customers than it lost in the first quarter for the first time since 2013. It also raised its forecast for profit growth this year, although its first-quarter revenue fell short of analysts’ expectations.
Domino’s Pizza helped drag down the market and fell 8.8 percent after reporting weaker-than-expected quarterly profit and revenue for the latest quarter.
All told, the S&P 500 rose 8.83 points to 7,137.91. The Dow Jones Industrial Average fell 62.92 to 49,167.79, and the Nasdaq composite rose 50.50 to 24,887.10.
In the bond market, Treasury yields rose following the rise in oil prices. The yield on the 10-year Treasury note rose to 4.33 percent from 4.31 percent Friday evening.
The Federal Reserve will announce its latest move on short-term interest rates on Wednesday, and the consensus expectation among traders is that it will keep the federal funds rate steady. Lower rates would boost the economy, but they also threaten to worsen inflation when oil is more expensive and tariffs threaten to raise prices for all sorts of other goods.
Wednesday is likely to be the last meeting where Chairman Jerome Powell will lead the Fed. His term as chairman is set to end next month, and Trump has already nominated his successor, Kevin Warsh.
The European Central Bank, the Bank of Japan and the Bank of England will also announce their interest rate decisions this week.
In stock markets abroad, indices slipped in Europe following stronger gains in Asia. South Korea’s Kospi jumped 2.2 percent, and Japan’s Nikkei 225 rose 1.4 percent for the world’s two biggest measures.
AP with Reuters
The Market Recap is a summary of the day’s trading. Let’s find each otherekday afternoon.
