The New York Stock Exchange closed on a cautious note on Monday, driven by fears of a new escalation in the Middle East. Donald Trump’s comments about “serious discussions” with Iran were not enough to reassure investors.
After initially opening in positive territory, the Nasdaq index ended down by 0.73% and the broader S&P 500 index slipped by 0.39%. The Dow Jones managed to gain 0.11%.
“We started the day on a rather optimistic note because Donald Trump made statements that could be interpreted positively,” summarized Sam Stovall of CFRA for AFP.
“But Wall Street now knows that not everything should be taken at face value,” he continued.
Before the New York market opened on Monday, Donald Trump announced on his Truth Social platform that the United States was in “serious discussions with a NEW, AND MORE REASONABLE, regime to end” military operations in Iran.
However, in the same message, he also threatened Iran to destroy the Kharg refinery, an essential Iranian oil site, if the Strait of Hormuz, a strategic passageway for oil, is not reopened and discussions with Tehran do not progress “quickly.”
“This situation worries some analysts who fear a prolonged conflict,” noted Jose Torres of Interactive Brokers. “While others believe it increases the chances of an agreement.”
At present, oil prices continue to soar, with concerns that this increase could have a lasting impact on consumer prices.
The American West Texas Intermediate barrel closed above $100 on Monday for the first time since the start of the conflict. Before the conflict, it was trading around $60 per barrel.
In the bond market, the yield on ten-year U.S. government bonds fell to 4.35% from 4.43% at Friday’s close.
“Rates are falling as economic slowdown risks intensify and overshadow forecasts of stronger inflation,” explained Jose Torres.
Investors will be paying close attention to various U.S. labor market data this week, including the nonfarm employment figures for March expected on Friday.
In the business sector, memory chip manufacturers continued to decline following Google’s presentation last week of a new algorithm significantly reducing memory requirements for large artificial intelligence models.
Micron fell by 9.88% on Monday, Sandisk lost 7.04%, and Western Digital declined by 8.60%.
Alcoa, the American aluminum producer, saw a notable increase in its stock (+8.22% to $63.21) as metal prices rose following attacks on two major global smelters in the Gulf.
Boston Scientific, a medical equipment specialist, dropped by 9.02% to $62.93 after mixed results in clinical trials for a device intended for stroke-risk patients.
The U.S. market will be closed on Friday for Good Friday.
Nasdaq
