US Stocks Mixed as Oil Prices Rise Amid Hormuz Uncertainty
The US stock market is experiencing a mixed open on Monday, with the S&P 500 nearly unchanged after fluctuating between small gains and losses. The Dow Jones Industrial Average was flat as of 11:30 am Eastern time, while the Nasdaq composite fell by 0.3%. Momentum in stocks has slowed down following a rally fueled by strong profits from big US companies. According to FactSet, earnings per share for S&P 500 companies were 50% higher in the spring compared to the same period last year, marking the best growth since five years ago.
Berkshire Hathaway's stock rose 2.2%, making it one of the strongest contributors to the S&P 500 index. The company has been known for buying stocks at what it considers low prices, and its strong profits have helped make its shares look less expensive. Other companies like MarineMax and Varex Imaging also saw significant gains after announcing major deals.
However, Intel's stock fell by 3.6% after the company announced plans to sell $15 billion of its stock, which would dilute existing investors' ownership stakes. In the oil market, Brent crude prices rose by 3.2% to $86.24 due to uncertainty about when the Strait of Hormuz could reopen and global crude flow resume.
The Federal Reserve's upcoming interest rate decision will be closely watched, with economists expecting a slowdown in inflation from 3.5% in June to 3.4% last month. A lower inflation reading would ease pressure on the Fed to raise interest rates, which would help keep a lid on inflation but also slow down the economy.
In other markets, Japan's Nikkei 225 index jumped by 2.1%, while European indexes were mixed after rising in much of Asia.