The S&P 500 lost 14.41 points to 7,443.28 on Monday, while the Dow fell 307 points and the Nasdaq finished nearly flat as a rebound in AI-linked chip stocks failed to lift the broader market.
Brent crude settled up 1.3% at $89.22 after swinging between $86 and $91, with Strait of Hormuz traffic down nearly 50% week over week as the Iran war disrupted tanker flows.
That oil surge fed inflation worries and pushed the 10-year Treasury yield up to 4.59% from 3.97% before the war, adding pressure to stocks and lifting 30-year mortgage rates to their highest in nearly a year.
Nvidia rose 0.2%, AMD gained 1.6% on an expanded Microsoft AI partnership, and Sandisk climbed 2.7%, but investors are still questioning whether heavy AI spending will deliver enough profit as Alphabet reports Wednesday.
Warner Bros. Discovery dropped 3.8% after a judge paused its $81 billion Paramount merger for at least two weeks, while AMC jumped 26.8% and Domino's added 2.1% on stronger-than-expected revenue.