Wall Street Ticks Lower Amid Middle East Developments and Inflation Concerns

Wall Street's main indexes ticked lower on Monday as investors weighed Middle East developments and awaited crucial inflation data and earnings. The S&P 500 and Dow hit record highs last week, but a potential agreement between Iran and Oman to define new shipping lanes has eased concerns over oil prices.

The S&P 500 energy index jumped 2.6%, tracking a 2% gain in oil prices. However, six of the 11 S&P 500 sectors were lower, with real estate and consumer staples stocks being the biggest weights. The S&P 500 information technology index lost 0.4%, with Apple declining 2.4% after a stock downgrade by Jefferies.

Consumer and producer inflation readings due later this week could offer key clues on the Federal Reserve's monetary policy path. Fed Chair Kevin Warsh has offered muted forward guidance, but investors are still concerned about high inflation rates. A benign CPI report and no September rate hike would give the market permission to run faster, according to Bob Edwards, chief investment officer at Edwards Asset Management.