Dow dips as S&P 500, Nasdaq hit records amid oil surge fears

US stocks ended mixed on Monday, with the S&P 500 and Nasdaq Composite closing at fresh record highs, while the Dow Jones Industrial Average edged lower as rising oil prices and geopolitical uncertainty tempered investor sentiment.

The S&P 500 gained 0.12% to close at 7,173.91, while the Nasdaq Composite added 0.20% to settle at 24,887.10.

Both benchmarks also touched intraday all-time highs. In contrast, the Dow fell 62.92 points, or 0.13%, to 49,167.79.

Markets traded in a narrow range throughout the session, showing limited conviction after a strong rally last week that pushed major indexes to repeated record closes.

Oil surge, Iran tensions weigh on sentiment

Investor caution was driven in part by rising oil prices and ongoing tensions in the Middle East.

Crude prices moved higher as the US and Iran remained at an impasse over negotiations.

President Donald Trump on Saturday canceled plans to send envoys to Pakistan for ceasefire talks.

“Too much time wasted on traveling, too much work!” Trump wrote on Truth Social. “Nobody knows who is in charge, including them. Also, we have all the cards; they have none! If they want to talk, all they have to do is call!!!”

Iran’s Foreign Ministry spokesperson Esmaeil Baqaei said no meeting between Tehran and Washington is currently planned.

Oil prices responded to the stalemate, with West Texas Intermediate settling 2.09% higher at $96.37 per barrel, while Brent crude rose 2.75% to $108.23.

Despite reports that Iran has proposed reopening the Strait of Hormuz in exchange for easing tensions, uncertainty continues to dominate the outlook.

Equities showed signs of consolidation following a strong upward run.

The S&P 500 has now more than doubled since the bull market began in October 2022.

Geopolitical risks remain a key concern for investors.

Earnings and Fed in focus this week

Investors are bracing for a packed week of catalysts, including earnings, economic data, and the Federal Reserve’s policy decision.

Five of the so-called “Magnificent Seven” technology giants — Amazon, Alphabet, Meta Platforms, Apple, and Microsoft — are scheduled to report results.

So far, earnings have been broadly positive.

Of the 139 S&P 500 companies that have reported, 81% have beaten estimates, with analysts now projecting 16.1% year-on-year earnings growth, according to LSEG I/B/E/S.

The companies reporting this week account for roughly 44% of the index’s market capitalization, underscoring their importance to market direction.

Meanwhile, the Federal Reserve is expected to hold interest rates steady at the conclusion of its policy meeting, with investors closely watching for signals on inflation and the economic impact of higher energy prices.

Individual stocks saw mixed moves, with Verizon rising after lifting its annual forecast, while Domino's Pizza fell on weaker-than-expected sales.

Nvidia extended recent gains, reclaiming a market valuation above $5 trillion.

As markets hover near record levels, investors remain focused on the interplay between earnings momentum, central bank policy, and geopolitical developments.