US Stocks Slide Below Record High Amid Oil Price Hike
The US stock market slipped below its record high on Monday as oil prices rose by 5% due to uncertainty about the Strait of Hormuz's reopening. The S&P 500 fell 0.1%, while the Dow Jones Industrial Average dipped 60 points and the Nasdaq composite dropped 0.3%. The decline in stocks follows a recent rally driven by strong profits from major US companies, with reports indicating that earnings per share rose 50% in the spring compared to last year.
Berkshire Hathaway, led by Warren Buffett's successor Greg Abel, saw its stock rise 1.5% after reporting stronger-than-expected profits and investing some of its cash reserves into stocks. Other companies like MarineMax and Varex Imaging also experienced significant gains following mergers and acquisitions announcements.
However, Intel's share price fell 4.1% due to plans to sell $15 billion worth of stock, which would dilute ownership stakes for shareholders. The move aims to take advantage of the growing spending on artificial-intelligence technology.