S&P 500 Declines from Record Highs on Middle East Conflict
Major U.S. indexes fell from record levels after reports of conflict in the Strait of Hormuz. Geopolitical risks outweighed strong corporate earnings reports.
The S&P 500 fell 0.33% to 7,206.53 on Monday afternoon as escalating Middle East tensions pulled Wall Street from record highs. The decline followed reports of a South Korea ship explosion and an Iran drone attack in the United Arab Emirates. Geopolitical risk is overshadowing a strong earnings season where S&P 500 companies expect 28% aggregate year-over-year profit growth.
Energy stocks rose on Monday afternoon following confrontations in the Strait of Hormuz. A merchant ship explosion and an Iranian drone strike on an oil installation raised maritime safety concerns. United States President Donald Trump said the navy would open the strait, though Tehran reported forcing a U.S. warship to turn back.
