US stocks retreated from record highs on Monday as renewed uncertainty over the Middle East conflict drove energy prices higher and darkened the macroeconomic outlook for companies. The S&P 500 and Nasdaq 100 edged lower, while the Dow Jones Industrial Average declined by about 150 points.
Iran said it would suspend talks with the US until Israel halts its operations in Gaza, a declaration that came shortly after fresh exchanges of fire between Iran and members of the Gulf Cooperation Council. This contrasted with earlier comments from US President Trump, who had described the dialogue with Tehran as promising.
More traditional, economically sensitive sectors in the Dow came under pressure, with shares of JPMorgan and Visa falling as much as 1%. By contrast, persistent strength in AI-related businesses continued to buoy semiconductor and software names. Nvidia gained more than 2% after unveiling its new RTX Spark Superchip, signaling its push into the PC market and challenging rivals AMD and Intel, whose shares each dropped around 5%.
The improved efficiency promised by Nvidia’s new product helped ignite another leg higher for software and hyperscaler stocks. Microsoft and Oracle both climbed about 4%, adding fresh momentum to the sector.
