Wall Street ends down as expectations of Hormuz deal fade
SPY•Intel and Nvidia weigh on chip stocks
Also weighing on the market were shares of Intel INTC.O, which fell 4.1% after the chipmaker said it was planning to raise $15 billion through a share sale.
Shares of Nvidia NVDA.O dropped 2.9%. A person familiar with the matter told Reuters on Monday that a group of financial firms, including Apollo Global APO.N and Blackstone BX.N, is working with Nvidia to put together a $500 billion funding package for AI infrastructure development.
The S&P 500 notched a record-high close on Friday, helped by much stronger than expected earnings results.
"It’s record margins and record earnings. That's just been the story of this market, and yet the overlay of the Iran conflict just pulls risk sentiment on and then pulls it off," said Tom Hainlin, an investment strategist at U.S. Bank Wealth Management in Minneapolis.
"The direct impact is just the energy sector and ... oil prices, and they're just sticky here above where they were on February 27 before the conflict. So there's clearly no transparency of the path to get back to where we were before the conflict started, and so that premium's just being built in. So far, the world's been able to work around it, but those workarounds don't last forever."
