US stocks traded mixed on Monday as investors assessed signs of progress in US-Iran peace talks, while shares of Elon Musk’s SpaceX (SPCX) fell for the third day in a row.
The Dow Jones Industrial Average (^DJI) gained roughly 0.2%, while the S&P 500 (^GSPC) fell 0.3% after Friday’s holiday stock market closure. The tech-heavy Nasdaq Composite (^IXIC) dropped by 1.1% as Alphabet (GOOG, GOOGL) swung 5% lower.
Markets continued to monitor the ongoing peace negotiations between the US and Iran. Iran said on Monday that there has been “encouraging progress” in peace talks with the US in Switzerland and agreed to a roadmap for a final deal within 60 days. That eased some nerves over President Trump’s threat of strikes on Iran if Tehran doesn’t rein in Hezbollah’s actions against Israel.
Oil prices fell as Trump’s warning vied with hopes that progress in the deal meant oil flows through the blockaded Strait of Hormuz could return to normal. Brent crude futures (BZ=F) slid 3% to just above $77 a barrel, while West Texas Intermediate (CL=F) crude retreated to trade near $73 a barrel.
Also in focus were the prospects for AI demand growth, after SK Hynix (000660.KS) overtook Samsung (005930.KS) to become South Korea’s most valuable listed company in a dramatic reversal of fortunes for the memory chipmaker.
Meanwhile, investors absorbed news of the death of Alan Greenspan at the age of 100, after presiding over the Federal Reserve as chairman through almost two decades of boom and bust.
Looking ahead, investors are gearing up for the May reading of the Personal Consumption Expenditures price index, the Fed’s preferred inflation gauge. The data comes as investors debate the chances that interest rates will remain higher for longer, after the Fed struck a more hawkish tone at its latest meeting.
