US stocks: Wall Street indexes slip as oil prices rise, retail results awaited

WALL Street’s three major indexes finished lower on Monday (Aug 17) as investors waited for quarterly reports from large retailers to provide insights into US consumer spending, while oil prices rose as the US and Iran appeared no closer to a deal.

Oil futures settled up more than US$2 per barrel as investor pessimism about diplomatic efforts to resolve the Iran war fanned global supply worries.

The gain in oil provided support for the energy index, which finished up 0.87 per cent and was the sole gainer among the S&P 500’s 11 major industry sectors.

Investors, with July’s weak retail sales and jobs data fresh in their minds, were cautious as they waited for quarterly results from retailers. Home improvement company Home Depot is due to report on Tuesday, and retail bellwether Walmart on Thursday.

“Concerns about recent softer data have the market being a bit tepid and waiting for retail earnings for direction,” said Phil Blancato, chief market strategist at Osaic Wealth, who added that volume is often weak in August, when many traders take vacations. “There’s a combination of summer doldrums and waiting for data on the consumer.”

The Dow Jones Industrial Average fell 272.63 points, or 0.51 per cent, to 53,459.78, the S&P 500 lost 40.70 points, or 0.52 per cent, to 7,745.06 and the Nasdaq Composite lost 84.25 points, or 0.31 per cent, to 26,644.91.

Except energy, all of the benchmark S&P 500’s 11 major industry sectors lost ground with communications services and consumer staples both falling about 1.5 per cent while financials and consumer discretionary lost a little over 1 per cent.

The S&P 500 technology sector finished down nearly 0.2 per cent after flitting between red and green during the session. Trading in technology has been volatile with investors anxious about whether hefty spending on artificial intelligence will pay off.

Reuters reported on Friday that two people familiar with Anthropic’s financials said the company, which is preparing for its IPO, forecast 2028 revenue of roughly US$190 billion to US$200 billion.

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On Monday, gains in chip stocks were offset by declines in software with the PHLX semiconductor index rallying 1.6 per cent while the S&P 500 Software & Services index sank 2.8 per cent.

Microsoft and Meta Platforms provided the biggest drags on the S&P 500, with both declining more than 3 per cent. Chip sector stocks provided the biggest index point boosts to the benchmark index with Micron Technology adding 4 per cent and Applied Materials climbing 5.5 per cent.

Investors are also waiting for results, due out next week, from leading AI chipmaker Nvidia, the world’s most valuable company.

In individual movers, US-listed shares of Vista rallied 5.6 per cent after Peter Thiel bought a 1 per cent stake in the Latin American oil company.

Declining issues outnumbered advancers by a 1.76-to-1 ratio on the NYSE, where there were 275 new highs and 226 new lows.

On the Nasdaq, 1,848 stocks rose and 3,106 fell as declining issues outnumbered advancers by a 1.68-to-1 ratio. The S&P 500 posted 19 new 52-week highs and four new lows while the Nasdaq Composite recorded 88 new highs and 113 new lows.

On US exchanges 14.74 billion shares changed hands compared with the 16.95 billion moving average for the last 20 sessions. REUTERS