Market News
U.S. stocks closed lower Monday as ceasefire uncertainty and stalled talks weighed on investor sentiment. The Nasdaq Composite, the S&P 500 and the Dow ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.01%, or 4.87 points, to close at 49,442.56. Seventeen components of the 30-stock index ended in negative territory, while 13 ended in positive territory.
The major loser of the Dow was 3M Company MMM. The stock price of this diversified technology company fell 2%. 3M currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
The tech-heavy Nasdaq Composite declined 0.3%, to close at 24,404.39.
The S&P 500 lost 0.2% or 16.92 points, to end at 7,109.14. Out of 11 broad sectors of the broad-market index, five ended in negative territory and six ended in positive territory. The Communication Services Select Sector SPDR (XLC), the Health Care Select Sector SPDR (XLV) and the Utilities Select Sector SPDR (XLU) fell 1.4%, 0.9% and 0.9%, respectively, while the Materials Select Sector SPDR (XLB) rose 0.6%.
The fear gauge, the CBOE Volatility Index (VIX), increased by 7.95% to 18.87. A total of 16.42 billion shares were traded on Monday, lower than the last 20-session average of 18.54 billion. The S&P 500 posted 44 new 52-week highs, and no new lows, while the Nasdaq Composite recorded 173 new highs and 42 new lows.
Geopolitical Strain Rises After U.S. Seizes Iranian Vessel
As a U.S.-Iran ceasefire is set to expire this week, efforts to extend it seem stuck in neutral. Iran called off plans to attend new talks with Washington-backed insurgents in Pakistan.
President Donald Trump said on Sunday that U.S. forces had fired on an Iranian-flagged ship in the Gulf of Oman and taken control of it. The Iranian-owned vessel was already on a U.S. Treasury blacklist for alleged past misconduct, and Trump told U.S. officials that they were examining its cargo.
Trump gave a warning that the infrastructure in Iran, such as power plants and bridges, would be at risk if no agreement is reached.
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This article originally published on Zacks Investment Research (zacks.com).
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