US Stocks Fall on Renewed US-Iran Tensions; QXO Dips After TopBuild Acquisition
US stocks closed lower on Monday, with each of the three major indices coming off a third consecutive week of gains as renewed tensions between the United States and Iran cast doubt on the sustainability of a two-week ceasefire.
Iran is considering participating in peace talks with the United States in Pakistan in response to measures taken by Islamabad to end the American blockade of Iranian ports. However, conflicting reports emerged about Vice President JD Vance’s whereabouts, with one source denying he was heading to Pakistan for talks.
The Strait of Hormuz was reopened on Friday, leading to a sharp rise in markets, with the S&P 500 and Nasdaq hitting record levels for the third consecutive session, recording their strongest weekly gains in 11 months. However, Tehran closed the crucial waterway again over the weekend.
US crude oil jumped 6.87% to settle at $89.61 a barrel, while Brent increased to $95.48 a barrel, boosting the S&P 500 energy index by 0.21%.
Market experts noted that recent events in the Strait of Hormuz and the arrest of an Iranian ship have delayed plans for complete reopening, but talks may still take place this week.
As first-quarter earnings reports continue, investors will assess the impact of the Iran situation on corporate profits and the economy, with companies like Lockheed Martin and IBM set to report later this week. Tesla will kick off earnings reports for the “Magnificent Seven” group on Wednesday.
Of the 48 S&P 500 companies that have reported earnings as of Friday morning, 87.5% exceeded analyst expectations, with a current first-quarter earnings growth rate of 14.4%.
QXO shares dropped 3.12% after the building materials distributor agreed to acquire TopBuild for $17 billion, with TopBuild’s shares surging 19.38%.
Despite more rising than falling stocks on NYSE, the number of declining stocks exceeded the rising ones on Nasdaq. The S&P 500 hit 44 new highs without any new lows, while the Nasdaq Composite recorded 173 new highs and 42 new lows.
Trading volume on US exchanges was 16.42 billion shares, below the 20-day average of 18.54 billion shares.
[Context: US stock market performance amid US-Iran tensions] [Fact Check: Automated translation disclaimer at the beginning of the article]
