Wall Street ended Monday in negative territory, with a sharp rise in oil prices triggered by geopolitical tensions in the Strait of Hormuz knocking the S&P 500 off its recent record and pushing the Dow Jones Industrial Average down by more than 550 points. The Dow fell 1.13% to 48,941.90, according to LSEG data. The broader S&P 500 retreated 0.41% to 7,200.75, while the Nasdaq Composite slipped 0.19% to 25,067.80.
The selloff came as a surprise to many investors, as both the S&P 500 and Nasdaq had just closed at all-time highs on Friday, buoyed by upbeat earnings and a recent decline in oil prices. Analysts had also raised their first-quarter profit growth forecast for S&P 500 companies to 27.8%, according to LSEG I/B/E/S data cited by Reuters. However, the mood shifted quickly after reports emerged of Iranian attacks on vessels and a UAE port near the strategic Strait of Hormuz.
Brent crude surged 5.8% to close at $114.44 per barrel, while U.S. West Texas Intermediate added 4.4% to finish at $106.42. The jump in oil prices reignites inflation concerns, potentially squeezing both companies and consumers, just as investors were weighing whether the Federal Reserve would be able to cut interest rates later this year. The 10-year Treasury yield crept up to roughly 4.44%, keeping mortgages and corporate loans under pressure. Barclays joined other major banks in now seeing no Fed rate cuts in 2026, while Brock Weimer at Edward Jones noted that oil staying above $100 would turn last year's tax cut-driven stimulus into more of a shock absorber.
Out of the 11 S&P 500 sector indexes, ten ended lower, with materials and industrials dragging the most. Energy was the sole gainer, reflecting the surge in crude prices. Ross Mayfield, investment strategist at Baird Private Wealth Management, pointed out that with stocks sitting at highs, there is not a lot of room for error, and risk continues to lean to the downside.
Palantir Earnings and After-Hours Moves
Palantir Technologies (PLTR) was the headline earnings mover after the bell. The data-analytics company raised its 2026 revenue target to $7.65 billion–$7.66 billion, up from the prior range of $7.18 billion–$7.20 billion. First-quarter revenue surged 85% to $1.63 billion, beating the consensus estimate of $1.54 billion. CEO Alex Karp described the U.S. business as erupting in a message to shareholders. Despite the strong results, Palantir shares slipped 2.69% in after-hours trade as of 18:55 EDT, according to Investing.com.
Among other major tech stocks, Apple (AAPL) hovered near flat, Nvidia (NVDA) dipped 0.34%, Alphabet (GOOGL) gave up 0.18%, Microsoft (MSFT) ticked down 0.20%, while Amazon (AMZN) managed a slight 0.10% uptick. Megacap tech mostly drifted lower, though losses were contained.
Amazon Logistics Expansion and GameStop Bid
Amazon made headlines during Monday's session with plans to let outside businesses tap into its logistics network through Amazon Supply Chain Services. This move is aimed directly at UPS (UPS) and FedEx (FDX), which have long dominated the parcel delivery sector. Both UPS and FedEx shares slid more than 9%. Analysts at Evercore ISI described Amazon's move as a direct competitive blow to parcel companies.
In other corporate news, GameStop (GME) made a volatile move by offering a $56 billion cash-and-stock bid for eBay (EBAY). Investors balked at the deal, pointing to GameStop's much smaller size and the massive financing required. GameStop shares dropped, while eBay climbed, signaling the market is not yet buying into this acquisition.
Market Outlook
Tuesday's setup is not symmetrical: the risk goes both ways, but not evenly. If crude prices slip or there is confirmation that vessels are moving safely through the Strait of Hormuz, the focus could shift back to earnings. However, as long as oil holds at elevated levels, the market faces stickier inflation, rising yields, and a Fed that may keep rates unchanged longer than some investors are betting.
