US close: Rising oil prices, bond yields push stocks lower

(Sharecast News) - US stocks declined on Monday despite gains in the AI and chip sectors, as oil prices and bond yields rose on the back of ongoing geopolitical uncertainty in the Middle East.

The Dow finished 0.5% lower, falling for the sixth time in eight sessions since hitting a record high on 5 August; the S&P 500 also slipped 0.5%, falling for the second straight day after reached a new peak last Thursday; while the Nasdaq edged down 0.3%.

Brent crude was up 2.7% at $90.87 a barrel after reports that an oil tanker had been seized in the Straight of Hormuz, though it was unclear where the ship originated from or was heading. Also hitting sentiment were comments from a senior Iranian official, who told Reuters that Tehran would adopt an offensive stance if diplomacy with the US breaks down.

"Concerns about continued tensions in the Middle East have kept the oil price elevated and fed into worries about the anticipated path of inflation," said Danni Hewson, head of financial analysis at AJ Bell.

"With a number of big box retailers due to update markets on the health of the US consumer later this week, there will be more than enough to keep investors on their toes," she added.

Meanwhile, rising bond yields were also weighing on stocks, with the 10-year US Treasury yield up 2.9 basis points at 4.725% as market participants looked ahead to the release of the latest Federal Open Markets Committee meeting minutes later in the week. The 30-year US bond yield also rose 4.5bp to 5.310%, its highest in nearly two decades.

In the corporate space, chipmakers gained on reports that Anthropic's secondquarter revenues had surged to more than $11.5bn. Micron, Broadcom and Nvidia also traded higher on the news.

Spacecraft robot manufacturer Intuitive Machines continued to rise after saying it had got an "authorisation to proceed" on a $600m satellite infrastructure deal.

On the macro front, US manufacturing activity strengthened sharply in August, according to the latest Empire State manufacturing survey from the New York Fed, with firms reporting solid gains in orders and shipments alongside longer delivery times and worsening supply availability. The headline general business conditions index rose five points to 20.6, its highest level in more than four years, signalling strong growth in statewide factory activity.

New orders increased to 17.3, shipments climbed to 11.7, and unfilled orders jumped to 15.5, while the delivery times index also moved higher, pointing to a notable buildup in backlogs. Price pressures remained elevated, with the prices paid index increasing to 58.6, suggesting a pickup in inputcost inflation, while prices received eased to 22.7, indicating sellingprice growth moderated but stayed high. Looking ahead, firms remained upbeat, with the future business conditions index rising to 32.1 as respondents said they were expecting strong gains in orders, shipments and employment over the next six months.

Elsewhere, homebuilder confidence edged slightly higher in August, according to the latest NAHB/Wells Fargo housing market index, though broader signs of cooling persisted across the sector. The headline index rose one point to 35, with current sales conditions improving two points to 39. Sales expectations for the next six months held at 43, while the gauge tracking prospectivebuyer traffic was unchanged at 23. The survey continued to highlight pressure on pricing, with around 35% of builders cutting prices in August, down from 37% in July and unchanged from June. The use of sales incentives remained elevated at 63%, matching the prior month.

Dow Jones - Risers

Caterpillar Inc. (CAT) $881.65 2.93%

Amgen Inc. (AMGN) $419.38 1.78%

Chevron Corp. (CVX) $202.70 1.34%

Goldman Sachs Group Inc. (GS) $1,051.31 1.14%

Dow Chemical Co. (DOW) $31.34 0.87%

Johnson & Johnson (JNJ) $262.37 0.78%

Merck & Co. Inc. (MRK) $135.97 0.10%

Walmart Inc. (WMT) $0.00 0.00%

Walgreens Boots Alliance, Inc. (WBA) $0.00 0.00%

Dowdupont Inc. (DWDP) $0.00 0.00%

Dow Jones - Fallers

Nike Inc. (NKE) $39.09 -4.03%

Walt Disney Co. (DIS) $103.50 -3.14%

Microsoft Corp. (MSFT) $480.35 -3.11%

McDonald's Corp. (MCD) $265.53 -2.68%

Salesforce.Com Inc. (CRM) $190.97 -2.67%

Boeing Co. (BA) $225.95 -2.47%

International Business Machines Corporation (CDI) (IBM) $228.85 -2.33%

American Express Co. (AXP) $336.21 -1.83%

Travelers Company Inc. (TRV) $364.51 -1.58%

Unitedhealth Group Inc. (UNH) $395.62 -1.52%

S&P 500 - Risers

Western Digital Corp. (WDC) $536.01 7.96%

Seagate Technology Plc (STX) $994.79 6.98%

Ipg Photonics Corp. (IPGP) $88.10 5.67%

Micron Technology Inc. (MU) $1,011.75 5.59%

Quanta Services Inc. (PWR) $722.31 5.33%

Applied Materials Inc. (AMAT) $535.31 4.86%

Fluor Corp. (FLR) $54.74 4.53%

Corning Inc. (GLW) $173.21 4.40%

Copart Inc. (CPRT) $31.70 4.34%

Incyte Corp. (INCY) $123.50 4.18%

S&P 500 - Fallers

Coterra Energy Inc. (CTRA) $32.56 -8.62%

Charter Communications Inc. (CHTR) $144.10 -8.12%

TripAdvisor Inc. (TRIP) $10.17 -7.98%

Gen Digital Inc. (GEN) $27.41 -7.34%

H&R Block Inc. (HRB) $50.13 -7.03%

Brighthouse Financial, Inc. (BHF) $55.74 -6.78%

Coty Inc. Class A (COTY) $2.67 -6.32%

Constellation Brands Inc. Class A (STZ) $130.56 -6.19%

Autodesk Inc. (ADSK) $241.64 -5.98%

Verisk Analytics Inc. (VRSK) $175.62 -5.80%

Nasdaq 100 - Risers

Western Digital Corp. (WDC) $536.01 7.96%

Seagate Technology Plc (STX) $994.79 6.98%

Micron Technology Inc. (MU) $1,011.75 5.59%

Applied Materials Inc. (AMAT) $535.31 4.86%

Incyte Corp. (INCY) $123.50 4.18%

Sirius XM Holdings Inc (SIRI) $29.13 3.72%

Texas Instruments Inc (TXN) $282.91 3.36%

Microchip Technology Inc. (MCHP) $80.26 3.05%

Lam Research Corp. (LRCX) $343.84 2.55%

Asml Holdings N.V. (ASML) $1,883.12 2.21%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

Charter Communications Inc. (CHTR) $144.10 -8.12%

Gen Digital Inc. (GEN) $27.41 -7.34%

Workday, Inc. (WDAY) $191.18 -6.13%

Autodesk Inc. (ADSK) $241.64 -5.98%

Verisk Analytics Inc. (VRSK) $175.62 -5.80%

Intuit Inc. (INTU) $335.60 -5.73%

Meta Platforms Inc. (META) $568.97 -5.28%

Adobe Systems Inc. (ADBE) $254.04 -5.23%

Check Point Software Technologies Ltd. (CHKP) $127.01 -5.22%