Oil Prices Plummet as US-Iran Hostilities Pause

Stocks on Wall Street ended in a mixed state on Monday as oil prices declined following a pause in US-Iran hostilities and renewed efforts to restart negotiations to end the war. The S&P 500 rose by less than 0.1%, coming off two consecutive weekly losses, while the Dow Jones Industrial Average gained 0.5%.

The Nasdaq composite dropped 0.2%, its fourth straight loss, as the three major stock indexes are on pace to close out this month in the red for a second consecutive time. Oil prices reversed course from last week's surge, with Brent crude dropping 6.3% to $85.87 per barrel and US crude oil falling 7.5% to $82.61 per barrel.

The US-Iran conflict has significantly reduced traffic through the Strait of Hormuz, affecting global economic activity, particularly in shipping costs and gasoline prices. This week's market focus will be on the Federal Reserve's interest rate policy update, with a nearly 36% chance that rates will rise by the end of the year to combat inflation.

Several major companies are set to report their earnings this week, including Sherwin-Williams, Boeing, and Visa. Investors are closely watching these reports for signs of consumer stress and the justification for Wall Street's record run in stock values.