Investing.com — U.S. stocks were mixed on Monday as investors turned their attention to earnings season this week in search of new market catalysts. Growing tensions in the Middle East will also be in the spotlight, amid a shortage of economic data and a communications breakdown from the Federal Reserve.
Wall Street ended a two-week winning streak on Friday, led by a sustained selloff in chip stocks that pushed the market into bear territory amid concerns about high-flying artificial intelligence trading.
Sentiment was also strained by the surge in oil prices due to the escalating situation between the United States and Iran, which offset positive inflation data. A post-earnings decline further dampened the mood.
At 2:57 p.m. ET (6:57 p.m. GMT), the benchmark index had followed the blue chips into negative territory, with the former now falling 0.1% to 7,451.20 points and the latter 0.6% to 51,853.79 points. The technology sector added 0.2% to 25,570.72 points.
“Market uncertainty looms large again – largely due to renewed tensions in the Middle East. The ongoing missile strikes in Iran do little to reassure the market that a permanent resolution to the conflict is imminent, and without measures to fully reopen the (Strait of Hormuz), it is no wonder investors are wary,” Yerbol Orynbayev, former World Bank governor of Kazakhstan, told Investing.com.
“Combine this with concerns about how AI will fundamentally change businesses and the current lull in the release of economic data that serve as crucial signals to investors, economists and policymakers, and it is likely that markets will remain nervous for some time,” he said.
“This is exacerbated by the current Fed blackout and speculation about the direction the next interest rate decision will take. Doubts about the independence of the central bank are still present and the November midterm elections are certain to increase pressure on the board, undermining stability and predictability at every turn. It is not immediately clear where the US economy is going, and with so little information available, it is not…
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