US Stocks Drift Near Records as Oil Prices Rise Amid Strait of Hormuz Uncertainty

The US stock market has drifted near its all-time high after some fluctuations. The S&P 500 fell 0.1% on Monday, while the Dow Jones Industrial Average dropped 0.3%, and the Nasdaq composite lost 0.4%. Momentum is slowing for stocks following a rally powered by soaring profits for big US companies.

Berkshire Hathaway, led by legendary investor Warren Buffett's successor Greg Abel, reported stronger-than-expected profit for the last quarter and invested some of its massive cash pile into stocks under its new CEO. The company's stock rose 1.4%, making it one of the strongest forces pushing upward on the S&P 500 index.

Technology stocks weighed heavily on the market. Intel fell 3.4% after announcing plans to sell $15 billion in stock, which would dilute existing investors' ownership stakes and likely be used for investments in artificial-intelligence technology. Nvidia and Apple also declined by 2.5% and 2%, respectively.

The price of Brent crude rose 4.7% to $87.50 due to uncertainty about when the Strait of Hormuz could reopen, affecting global oil flows. This sent inflation upward, with economists expecting a slowdown in inflation to 3.4% from 3.5% in June, which would ease pressure on the Federal Reserve to raise interest rates.