Stock Market Stalls Amid Oil Price Surge and AI Enthusiasm

The US stock market started the week in a cautious mood on August 17, with the S&P 500 hovering near record territory. The index stood at 7,773.61, down 12.15 points or 0.16%.

Technology shares provided support to the market, while economically sensitive areas and some large companies pulled the Dow lower. Semiconductor shares benefited from renewed enthusiasm around AI spending, with Micron gaining over 4% in the supplied market data.

The oil market remains a concern, with Brent crude near $89 a barrel raising concerns about inflationary pressure. Middle East tensions and rising Treasury yields also kept investors cautious. The S&P 500's near-flat performance suggests a pause after a powerful rally rather than a loss of confidence.

Nvidia, a key player in the AI trade, is scheduled to report its second-quarter fiscal 2027 results on August 26. Investors will focus not only on the headline earnings number but also on data-center demand, margins, supply constraints and management's outlook.