US stock indexes started the week in negative territory. Markets reacted to developments in the Middle East while investors prepared for earnings reports from several major technology companies.
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Major Indexes Fell While Energy Stocks Advanced
The Dow Jones Industrial Average declined by 0.59% to 51,839.26 points. The broader S&P 500 fell by 0.19% to 7,443.28 points, while the technology-heavy Nasdaq slipped by 0.05% to 25,508.07 points. Only three of the S&P 500’s eleven major sectors posted gains: energy, technology and communication services.
Investors also focused on individual companies. Alphabet shares were supported by reports that Google is developing a server chip with integrated Gemini AI technology to improve computing efficiency. Domino’s Pizza also gained after its quarterly revenue exceeded market expectations.
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Iran Conflict and Earnings Season Shape Market Sentiment
Investors continue to monitor the conflict between the United States and Iran. The Iran-backed Houthis announced a naval blockade of Saudi Arabia, while Tehran reportedly received a proposal aimed at easing tensions. A potential de-escalation could allow shipping through the Strait of Hormuz to resume and reduce pressure on oil prices and inflation.
Earnings season is set to intensify this week, with Alphabet, Tesla, Intel and IBM scheduled to report their results. According to LSEG data, the market expects S&P 500 companies to post a 26% year-on-year increase in second-quarter profits. The US dollar also strengthened against a basket of major currencies, while the euro weakened to $1.1416.
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Source: ČTK
