The S&P 500 and Nasdaq Composite fell on Monday after a record-setting week as traders monitored oil prices and bond yields while awaiting further developments with the conflict in the Middle East.
The broad market index dropped 0.2%, while the tech-heavy Nasdaq slid 0.5%. The Dow Jones Industrial Average added 91 points, or 0.2%.
Oil prices were higher. West Texas Intermediate futures climbed 0.5% to trade above $105 per barrel, while Brent crude traded up 0.5% to around $109 a barrel.
Those moves come during a delicate time for stocks. The S&P 500 and Nasdaq hit fresh record highs last week, while the Dow briefly reclaimed the 50,000 level.
However, the major averages suffered a setback Friday, as sovereign bond yields around the world rose. The U.S. 30-year Treasury bond yield hit its highest level in around a year. It was last little changed alongside the 10-year Treasury yield. In the U.K., the 30-year Gilt yield had scaled to levels not seen since the late 1990s, along with long-dated Japanese bond yields.
Tech stocks, which had been leading the market to record highs got battered by the spike in yields. The Nasdaq-100 index dropped 1.5% on Friday, marking its worst one-day performance since March 27.
Tensions are still high between Iran and the U.S., keeping oil prices elevated as the path forward for the conflict remains unclear. On Sunday, President Donald Trump said Iran had to “get moving” or there “won’t be anything left.” Peace negotiations between both countries have been deadlocked.
On top of that, new inflation data released last week makes the Federal Reserve cutting rates anytime soon a long shot.
“The financial markets expect interest rates to remain higher for longer, notwithstanding President Trump’s demands that Kevin Warsh, newly instated as Fed chief, get rates down,” wrote Ed Yardeni, president of Yardeni Research. “But the macroeconomic backdrop no longer supports an easing bias, let alone a rate cut.”
JPMorgan upgrades Ball and Crown
Ball and Crown Holdings were both upgraded by JPMorgan on Monday to overweight from neutral.
The firm cited the stocks’ valuations, with Ball gaining about 6% year to date, while Crown shed 4%. In contrast, the S&P 500 is up 8%.
Analyst Jeffrey Zekauskas believes the aluminum can producers should increase volumes by 3% to 4% this year.
“Beverage can industry supply/demand balances have tightened because of rationalization steps by major producers,” he said in a note to clients. “Aluminum cans appear to be the preferred packaging medium by the growing branded energy drink sellers.”
Zekauskas’ $60 price target on Ball implies about 9% upside from Friday’s close, while his $107 target on Crown suggests the stock can rally 11%
— Michelle Fox
Ford subsidiary announces energy deal
Ford Motor Company‘s subsidiary Ford Energy announced a deal with EDF power solutions North America to develop up to 20 gigawatt hours of battery energy storage systems.
Deliveries as part of the agreement are expected to start in 2028. Lisa Drake, president of Ford Energy, said in a press release validates the company’s mission.
“We are delivering the kind of predictable quality and long-term operational confidence that grid operators and large-scale developers require,” she said. “Ford Energy was purpose-built to serve customers who cannot afford uncertainty in their energy storage supply chain.”
UBS said investors were likely to welcome the announcement as focus on Ford Energy increases. Buzz around Ford’s entry into the energy storage space sent its stock surging last week, with shares up 20% over the course of just two days.
— Davis Giangiulio
S&P 500 opens little changed
The S&P 500 rose slightly on Monday morning.
The broad market index climbed 0.1% shortly after the opening bell, while the Nasdaq Composite gained 0.3%. The Dow Jones Industrial Average was trading around the flatline.
— Sean Conlon
Friday’s market slide may be a sign of more to come, BTIG’s Krinsky says
Stocks could be headed for more losses following Friday’s declines, according to BTIG’s Jonathan Krinsky.
“On Thursday SPY had a daily RSI of 78. On Friday, SPY lost -1.2%. Since 2003, there have only been six prior times when SPY lost more than 1% immediately following an RSI of 75+,” the chief market technician wrote in a note dated Sunday.
For every timeframe between 5 and 40 days, the average returns were negative, Krinsky noted. Additionally, five of those six instances saw at least a peak-to-trough drop of at least 7% over the following weeks — the one exception came in 2023, when it traded sideways.
— Sean Conlon
‘I should have asked for more,’ Trump says of Intel stake
U.S. President Donald Trump has said he should have asked for a bigger stake in chipmaker Intel, nine months on from a landmark deal that saw the U.S. government take a 9.9% holding in the company.
Describing his interaction with Intel CEO Lip-Bu Tan, Trump told Fortune in an interview published Monday that he asked for “10% ownership for free” of the company, Tan replied “you have a deal,” and the president said: “S—, I should have asked for more.” Read more.
— Kai Nicol-Schwarz
NextEra Energy to buy Dominion Energy
NextEra Energy will buy Dominion Energy in an all-stock deal that combines two leading players in the race to meet growing electricity demand from data centers that run artificial intelligence applications.
The deal will create the largest regulated electric utility in the world, the companies said Monday. NextEra shareholders will own 74.5% of the combined company while Dominion will own 25.5%. Read more.
— Spencer Kimball
Regeneron Pharmaceuticals, Macy’s and Bio Rad Laboratories among the stocks making moves before the bell
Check out the companies making the biggest moves premarket:
- Regeneron Pharmaceuticals — The drugmaker fell more than 11% after its treatment for a skin cancer missed goals in a late-stage trial.
- Macy’s — The department store shares jumped nearly 4% in premarket after a regulatory filing revealed Berkshire Hathaway initiated a small position in the company, valued at roughly $55 million at the end of the first quarter. The stake is very small for the conglomerate, so many speculated it was bought by investment lieutenant Ted Weschler, who manages 6% of the equity portfolio.
- Bio Rad Laboratories — The stock jumped 13% following a Wall Street Journal report that activist Elliott Investment Management has built a sizable stake in the company. However, the exact size of the stake nor Elliott’s vision for the company were not detailed in the report.
Read here for the full list.
— Davis Giangiulio
Asia markets close broadly lower amid fears over oil supply crunch
Asia-Pacific markets mostly fell Monday as investors weighed renewed geopolitical tensions in the Middle East and potential disruptions to global oil supplies.
In Australia, the S&P/ASX 200 ended Monday’s session 1.45% lower at 8,505.30. Japan’s Nikkei 225 lost 0.97% at 60,815.95, while the Topix was 0.97% lower at 3,826.51. South Korea’s Kospi rose 0.31% at 7,516.04, reversing losses at the start of the session, while the small-cap Kosdaq fell 1.66% at 1,111.09.
Yields on the Japanese 10-year government bond jumped over 9 basis points to 2.793%, extending the selloff on the back of a rise in global bond yields as inflation fears mounted.
Hong Kong’s Hang Seng index fell 1.22% in the last hour of afternoon trade, while the mainland CSI 300 was down 0.54% at 4,833.52. Taiwan’s Taiex declined 0.68% at 40,891.82.
India’s Nifty 50 was 0.12% lower.
Oil prices pared earlier gains. International benchmark Brent crude futures for July added 0.79% to trade at $110.12 per barrel. U.S. West Texas Intermediate futures for June advanced 1.17% to $106.65 per barrel.
— Justina Lee
Asia-Pacific markets mostly fall as Trump’s Iran warning stokes fresh oil supply fears
Asia-Pacific markets fell Monday as investors weighed renewed geopolitical tensions after U.S. President Donald Trump warned Iran to “get moving, FAST,” raising fears of further escalation in the Middle East and potential disruptions to global oil supplies.
In a post on Truth Social, Trump on Sunday said “the Clock is Ticking” for Iran and warned there “won’t be anything left” if action was not taken soon, adding that “TIME IS OF THE ESSENCE!” He did not elaborate on the steps he wanted Iran to take or the consequences that could follow.
Oil prices advanced more than 1%. International benchmark Brent crude futures for July gained 1.90% to trade at $111.34 per barrel. U.S. West Texas Intermediate futures for June advanced 2.17% to $107.71 per barrel.
In Australia, the S&P/ASX 200 fell 1.32%.
Japan’s Nikkei 225 lost 0.92%, while the Topix was 0.77% lower. South Korea’s Kospi reversed losses at the start of the session, rising 1.15%, while the small-cap Kosdaq fell 1.65%.
Yields on the Japanese 10-year government bond jumped over 9 basis points to 2.793%, extending the selloff on the back of a rise in global bond yields as inflation fears mounted.
Hong Kong’s Hang Seng index fell 1.49%, while the mainland CSI 300 was down flat. Taiwan’s Taiex declined 1.02%.
— Lee Ying Shan
Stocks show ‘initial signs’ of stalling, says Fundstrat
Friday’s decline points to “initial signs” of U.S. stocks stalling after ripping to record highs, according to Fundstrat technical strategist Mark Newton.
“Cross-asset volatility is starting to creep back into the picture, given a synchronized global push higher in long-end Treasury yields, both domestically and across most of the developed world. While US Equities have continued to grind to new all-time highs this week on the back of NVDA and the Mag 7 doing the heavy lifting, Friday’s session showed the first material signs of bearish reversal in both SPX and QQQ following a more than 17% rally in seven weeks,” Newton said in a note Friday.
— Fred Imbert
G7 to meet amid Strait of Hormuz closure
Ahead of a meeting of finance ministers from the Group of Seven developed economies in Paris on Monday, a senior European official says the situation in the Middle East has highlighted how exposed the interconnected global economy is to external shocks.
“Opening the Strait of Hormuz and bringing the conflict to a lasting end are of the utmost importance in mitigating the impact on the economy,” Eurogroup President Kyriakos Pierrakakis said in a statement.
The Eurogroup is a body that brings together ministers from the euro area and is being represented at the G7 meeting by Pierrakakis, who is also the Greek finance minister. The G7′s core members are the U.S., U.K., Canada, France, Germany, Italy and Japan.
Read more here.
— Azhar Sukri
