U.S. Stocks Edge Lower Ahead of Busy Week
U.S. equities traded slightly lower on Monday as investors positioned themselves for a packed week filled with geopolitical developments and major corporate earnings, particularly from artificial intelligence leaders.
At 11:00 ET (15:00 GMT), the S&P 500 slipped 0.1% to 7,160.82 points. The NASDAQ Composite declined 0.2% to 24,782.84, while the Dow Jones Industrial Average also fell 0.2% to 49,139.52.
The major indices ended last week on a mixed note, with gains in the S&P 500 and Nasdaq offset by a decline in the Dow.
Iran Tensions Weigh on Market Sentiment
Investor sentiment had briefly improved on Friday amid hopes for renewed U.S.–Iran negotiations that could help reopen the Strait of Hormuz and ease oil supply concerns.
However, over the weekend, Donald Trump canceled plans to send U.S. negotiators to Pakistan, signaling continued deadlock. The prolonged disruption in the Strait of Hormuz—responsible for roughly 20% of global oil flows—remains a key concern for markets.
Trump reiterated that Iran could initiate talks directly, emphasizing that the U.S. holds a strong negotiating position.
Iran Proposal Adds Uncertainty
Reports on Monday suggested that Iran has proposed reopening the Strait of Hormuz without addressing its nuclear program. The proposal also calls for the U.S. to lift its blockade on Iranian ports.
While the offer, reportedly relayed through Pakistan, has raised some hopes for de-escalation, uncertainty remains over whether Washington will accept the terms.
At the same time, both sides continue to disagree on key issues, including the naval blockade and Iran’s control over the vital shipping route.
Trump to Review Next Steps
According to reports, President Trump is expected to meet with senior national security officials to evaluate the situation. Discussions may include whether to resume military operations, which are currently paused under an extended ceasefire.
Earnings Season Takes Center Stage
Beyond geopolitical developments, earnings season is a major focus for investors. Verizon shares rose about 3% after the company raised its full-year profit outlook and reported stronger-than-expected wireless subscriber growth, driven by improved promotions and bundled offerings.
Tech Giants and AI Spending in Spotlight
Roughly 35% of companies within the S&P 500 are scheduled to report earnings this week. Early results have been solid, with expectations for a sixth consecutive quarter of double-digit earnings growth.
Attention is particularly focused on major technology firms investing heavily in artificial intelligence, including Alphabet, Microsoft, and Meta.
These companies have been driving the AI-led market rally, helping push equity indices to record highs despite ongoing geopolitical risks.
