US stocks showcased a mixed performance on Monday as investors closely followed developments in the US-Iran peace talks. Shares of Elon Musk’s SpaceX (SPCX) continued to decline, marking a third consecutive day of losses.
The Dow Jones Industrial Average (^DJI) experienced a modest uptick, gaining approximately 0.4%. In contrast, the S&P 500 (^GSPC) slipped by 0.3% following the previous Friday’s market closure. The tech-heavy Nasdaq Composite (^IXIC) faced a more significant decline, falling 1.1%, with shares of Alphabet (GOOG, GOOGL) plummeting by 5%.
Ongoing peace negotiations between the US and Iran appeared to influence market sentiment. Iran announced that there has been “encouraging progress” in talks held in Switzerland, agreeing to a roadmap for a final deal within 60 days. This development eased some concerns linked to President Trump’s recent threats of military action against Iran unless it curtails Hezbollah’s operations against Israel.
In response to news regarding the negotiations, oil prices saw a decline. Brent crude futures (BZ=F) dropped by 3%, settling just above $77 per barrel. Similarly, West Texas Intermediate (CL=F) crude prices fell to around $73 per barrel, reflecting a shift in market expectations about oil flow stability through the critical Strait of Hormuz.
Investors also focused on the growing prospects for artificial intelligence demand. Notably, SK Hynix (000660.KS) surpassed Samsung (005930.KS) to become South Korea’s most valuable listed company, showcasing a remarkable turnaround for the memory chipmaker.
In a somber note for the financial community, news broke regarding the death of former Federal Reserve Chairman Alan Greenspan at the age of 100. Greenspan was known for his nearly two-decade leadership of the Fed, during which he navigated various economic cycles of growth and recession.
Looking ahead, market participants are preparing for the May reading of the Personal Consumption Expenditures price index, regarded as the Federal Reserve’s preferred inflation metric. This upcoming data release is particularly critical as investors weigh the implications of the Fed’s recent hawkish stance on interest rates, raising questions about whether rates may remain elevated for an extended period.
