Wall Street Slumps as Hormuz Deal Hopes Fizzle

Wall Street closed lower on Monday as expectations of a deal to reopen the Strait of Hormuz faded. The Nasdaq and S&P 500 fell, with Intel shares declining 4.1% after announcing a $15 billion share sale.

The Iran conflict has added uncertainty to oil prices, which rose about 5% to settle at $82.13 a barrel. This increase in energy costs is fueling concerns over inflation and potential interest rate hikes by central banks.

Tom Hainlin, an investment strategist at U.S. Bank Wealth Management, noted that record margins and earnings have been a hallmark of the market, but the Iran conflict has disrupted investor sentiment.

The S&P 500 notched a record-high close on Friday, driven by strong earnings results from companies like Intel and Nvidia. However, shares of Nvidia fell 2.9% after reports emerged of a $500 billion funding package for AI infrastructure development.