FX.co ★ US Stocks Pull Back

US stocks closed mostly lower on Monday, mirroring a global equity pullback as the deepening conflict in the Middle East pushed oil prices higher and reinforced stagflation risks. The S&P 500 and Nasdaq posted modest declines, while the Dow fell more than 0.5%. A US delegation led by Vice President Vance failed to reach an agreement with Iran over the weekend, after which President Trump announced a blockade on tankers carrying Iranian energy. The resulting surge in oil and gas prices drove bond yields higher and intensified macroeconomic headwinds for credit‑sensitive and speculative sectors.

Semiconductor manufacturers and data center operators declined, with Nvidia losing more than 1%. In contrast, banks and asset managers traded mixed ahead of this week’s earnings reports, which are expected to shed light on the impact of higher yields and potential vulnerabilities related to private credit exposures. Goldman Sachs, the first major bank to report, dropped 4% after missing revenue estimates in its fixed income, currencies, and commodities trading division.