Wall Street's three major indexes fell on Monday as investors waited for quarterly reports from large retailers to provide insights into U.S. consumer spending, while oil prices rose as the U.S. and Iran appeared no closer to a deal.
Oil futures settled up more than $2 per barrel as investor pessimism about diplomatic efforts to resolve the Iran war fanned global supply worries. The gain in oil provided support for the energy index .SPNY.
Investors, with July's weak retail sales and jobs data fresh in their minds, were cautious as they waited for quarterly results from retailers. Home improvement company Home Depot HD.Nis due to report on Tuesday, and retail bellwether Walmart WMT.O on Thursday.
"Concerns about recent softer data have the market being a bit tepid and waiting for retail earnings for direction," said Phil Blancato, chief market strategist at Osaic Wealth, who added that volume is often weak in August, when many traders take vacations. "There's a combination of summer doldrums and waiting for data on the consumer."
According to preliminary data, the S&P 500 .SPX lost 39.55 points, or 0.51%, to end at 7,746.21 points, while the Nasdaq Composite .IXIC lost 76.87 points, or 0.31%, to 26,652.29. The Dow Jones Industrial Average .DJI fell 263.21 points, or 0.49%, to 53,469.20.
Most of the benchmark S&P 500's 11 major industry sectors lost ground on the day with communications services .SPLRCL, consumer staples .SPLRCS and consumer discretionary .SPLRCD among the weakest.
The S&P 500 technology sector .SPLRCT flitted between red and green during the session. Trading in technology has been volatile with investors anxious about whether hefty spending on artificial intelligence will pay off. Reuters reported on Friday that two people familiar with Anthropic's financials said the company, which is preparing for its IPO, forecast 2028 revenue of roughly $190 billion to $200 billion.
On Monday, gains in chip stocks were offset by declines in software with the PHLX semiconductor index .SOX rallying while the S&P 500 Software & Services index .SPLRCISsank.
Investors are also waiting for results, due out next week, from leading AI chipmaker Nvidia NVDA.O, the world's most valuable company.
In individual movers, U.S.-listed shares of Vista VISTAA.MX, VIST.N gained ground after Peter Thiel bought a 1% stake in the Latin American oil company.
Reuters
