Dollar Strength and Middle East Uncertainty Weigh on US Stocks

The US stock market experienced a subdued start to the week, with President Donald Trump's inability to close a deal with Iran on the opening of the Strait of Hormuz contributing to uncertainty among investors.

'Everyone has gotten tired of the back and forth,' said Zachary Hill, head of portfolio management at Horizon Investments, adding that each time tensions in the Middle East flare up, they are of smaller magnitude than before.

The Nasdaq Composite underperformed its peers, dropping 85.26 points or 0.32 percent to close at 26,605.36, weighed down by weakness in megacap technology names.

The dollar dominated the currency markets on Monday, climbing against nearly every major counterpart, with the British pound managing a slight gain and the Canadian dollar remaining unchanged.