US stock market holds near its all-time high and crude oil prices rise
NEW YORK (AP) — The U.S. stock market is drifting near its all-time high, while oil prices rise on uncertainty about when the Strait of Hormuz could reopen and get the global flow of crude going again. The S&P 500 was barely changed in early trading Monday, coming off its record set on Friday. The Dow Jones Industrial Average slipped 72 points, and the Nasdaq composite fell 0.1%. Several big tech stocks were falling in early trading, including Apple and Intel. Berkshire Hathaway rose after becoming one of the latest companies to deliver a stronger profit than analysts expected. Brent crude rose 1.6%.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
U.S. markets are pointing to a mixed open on Monday as oil prices climb due to a seeming stalemate over the Strait of Hormuz.
Futures for the S&P rose 0.2%, while futures for the Dow Jones Industrial Average fell 0.14%. Nasdaq futures were up 0.14% before the opening bell.
Iran insisted that the U.S. meet its demands in negotiations before the Strait of Hormuz reopens. Details emerged on the potential deal between Iran and Oman on managing the Strait of Hormuz as Tehran suggested that vessels linked to “hostile countries” would be barred.
Brent crude, the international standard, gained 1.4% to $84.68 per barrel. U.S. benchmark crude advanced 1.4% to $79.30 per barrel.
“Negotiators said that a deal to establish a safe shipping route was close, but Iran may now be exploring just how much it can extract from the U.S. in return,” Bas van Geffen, senior macro strategist for Rabobank, wrote.
Inflation will be the focus this week in the U.S. with new data from July landing midweek. The Labor Department releases its consumer price index Wednesday, with economists expecting a slight easing from June. On Thursday, the U.S. posts July data on producer prices, or costs that are in the pipeline before goods reach consumers.
In U.S. markets before the opening bell, the energy sector is rising in tandem with the price of oil. Marathon, Occidental and Valero were the biggest gainers.
On the other side, cruise lines like Carnival and Norwegian, as well as hotels and travel booking sites, fell with the cost of fuel expected to rise.
Tech stocks are also on the rise after a weak jobs report Friday raised the odds that the Federal Reserve would hold off on an interest rate hike at its next meeting. The fast-growth tech sector is reliant on cheap access to credit and there have been expectations that the Fed was leaning toward raising borrowing costs to combat inflation.
Shares were mostly higher in Europe and Asia, with Japan’s Nikkei 225 leading advances.
The U.S. dollar rose to 158.80 Japanese yen from 157.72 yen. The euro fell to $1.1552 from $1.1561.
