US stocks extended losses on Monday, interrupting last week’s powerful rally that had propelled major indices to record highs, as renewed doubts over Middle East peace prospects raised concerns about regional energy supplies. The S&P 500 and Nasdaq 100 each declined about 0.5%, while the Dow slipped roughly 0.3%.
President Trump indicated that the current ceasefire with Iran will not be extended beyond Wednesday, a move that is likely to keep US and Iranian blockades on commercial vessels transiting the Strait of Hormuz in place and continue to constrain energy flows from the region.
Large-cap technology stocks led the market lower. Broadcom and Meta each fell more than 2%, while Microsoft, Nvidia, and Alphabet declined over 1%. Tesla notably gave up early gains to trade 2% lower ahead of its earnings release this week, the first among the so-called Magnificent 7 to report. Intel also slid more than 1% before its earnings call, as investors shifted focus from speculative growth toward tighter risk management.