Stocks Near Records as Oil Prices Jump Amid Strait of Hormuz Uncertainty
US stocks hovered near record levels on Monday, August 11, as investors awaited key inflation data and the Federal Reserve's next rate move. The S&P 500 index was down by a mere 0.1% after fluctuating between small gains and losses, coming off its record high set on Friday.
The Dow Jones Industrial Average fell by 133 points or 0.3%, while the Nasdaq composite lost 0.4%. Despite strong corporate earnings supporting stocks, technology shares weighed heavily on the market, with NVIDIA falling 2.5% and Apple dropping 2%.
Oil prices jumped as uncertainty over the Strait of Hormuz clouded the global flow of crude, rising to $87.50 a barrel for Brent crude. Higher oil prices could add to inflation, making Wednesday's update on US consumer prices crucial in shaping expectations on interest rates.
Berkshire Hathaway was among the companies reporting stronger profits than expected, with its shares rising 1.4%. The company has invested part of its cash pile in stocks under new CEO Greg Abel, known for buying attractively priced stocks.
In other market news, MarineMax surged 45.8% after agreeing to sell itself to a Blackstone portfolio company for $1.5 billion, while Varex Imaging jumped 48.7% following Teledyne Technologies' acquisition offer of $18.90 per share in cash.