US stocks: US market slips as oil prices rise, retail results awaited

Synopsis

As investors braced for retail earnings reports, major stock indexes fell, signaling caution in the market. Oil prices surged, driven by concerns over Iran alongside global supply uncertainties. Recent economic data from July amplified the cautious atmosphere, as Home Depot and Walmart's earnings loom ahead, promising key insights into consumer spending trends. Technology stocks, however, exhibited a mixed performance in the face of AI investment risks.

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.

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 is due to ​report on Tuesday, and retail bellwether Walmart 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 lost 39.55 points, or 0.51%, to end at 7,746.21 points, while the Nasdaq Composite lost 76.87 points, or 0.31%, to 26,652.29. The Dow Jones Industrial Average 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, consumer staples and consumer discretionary among the weakest.

The S&P 500 ‌technology sector 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 rallying while the S&P 500 Software & Services index sank.

Investors are also waiting for results, due out next week, from leading AI chipmaker Nvidia, the world's most valuable company.

In individual movers, U.S.-listed shares of Vista gained ground after Peter Thiel bought a 1% stake in the Latin American oil company.

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