US equities retreated on Monday as a renewed surge in oil prices intensified inflation concerns and reinforced expectations of a forthcoming Federal Reserve rate hike. The S&P 500 and Nasdaq 100 each slipped 0.3%, while the Dow Jones Industrial Average fell more than 0.5%.
Crude and refined product prices moved higher after the United States and Iran exchanged fresh military strikes, following earlier threats to disrupt tanker and vessel traffic in the Persian Gulf. The resulting tensions have extended the halt of exports from the region.
Treasury yields climbed across the curve, weighing on equities in credit-sensitive sectors. Mega-cap tech stocks came under pressure, with Microsoft, Alphabet, and Amazon each declining more than 1%. Financials were also weaker: shares of Citigroup, Morgan Stanley, and American Express fell about 1%.
Nvidia finished the session little changed after disclosing a $3.5 billion investment in MediaTek, further expanding its exposure to global semiconductor manufacturing and AI infrastructure.
Despite Monday’s pullback, major benchmarks remain higher for the month: the S&P 500 is up 2.5% in August, the Nasdaq 100 has gained 3.8%, and the Dow has advanced 1.4%.
