Closing Bell: Apple Downgrade, Rising Oil Weigh on Stocks

U.S. stocks took a breather Monday as investors weighed uncertainty about Iran's negotiations to control shipments in the Strait of Hormuz, a sharp rally in crude oil prices that resulted, and higher Treasury yields.

The S&P 500 (SPX) slipped 0.06%, just below Friday's record close, while the tech-heavy Nasdaq-100 (NDX) fell 0.34%. The Dow Jones Industrial Average ($DJI) lost 61 points, or 0.11%, and the small-cap Russell 2000 (RUT) declined 0.56%. Oil prices surged roughly 5% to near $82 per barrel, while the benchmark 10-year Treasury yield climbed four basis points to approximately 4.7%, creating additional headwinds for risk assets. 

The moves come after the three major indices had their best week since April.

Three things to watch from Monday's market: 

Oil Rally Creates Market Headwinds: Iran indicated progress toward an agreement with Oman to reopen the Strait of Hormuz, though Tehran continued to resist direct negotiations with the United States until several conditions are met. The advance in energy prices raised concerns that inflation pressures could persist, contributing to weakness in broader equity markets. Both higher oil prices and rising yields pressured growth-oriented sectors. See Molly Pieroni Explains Strait of Hormuz's Lasting Impact on Energy Earnings

Space Exploration Technologies (SPCX) at IPO Price: SpaceX stock rose 4.2% Monday to $138.74. Combined with its 16% surge Friday, the stock has now rebounded past its $135 IPO price. The move follows the expiration of a lockup on roughly 911 million insider shares last week, according to reports. See July 2026 STAX: SPCX Among Biggest Buys, MU & SNDK Options Highly Volatile

Technology in the Headlines: 

Advancers:

·        Netflix (NFLX) shares jumped 2.9% after it reported it nearly doubled its advertising commitments this year, in line with expectations. See Ad Engagement & Content Opportunities Offer Bullish Edge for NFLX

·        Microsoft (MSFT) shares rose 1.2% Monday. The company said it is planning to “significantly” increase production of its next-generation AI chips, according to The Information, as the company prepares to unveil its new Maia 300 chip this fall. AI Divergence, Rotation Strength & ROI: What's Next for Mag 7?

·        Meta Platforms (META) released the Muse Glimmer AI model, a 30-billion-parameter open agentic model that everyday users can download and customize. Meta shares were up nearly 0.5% Monday. 

Decliners:

·        Intel (INTC) shares dropped 4% after the company announced a $15 billion common stock offering, sparking concern about shareholder dilution as the chipmaker pursues financing for its ongoing strategic initiatives. U.S.-Iran War's Lingering Overhang, AAPL Downgrade & INTC Share Sale

·        Nvidia (NVDA) shares declined nearly 3% after the Financial Times reported Nvidia is working to secure $500 billion for AI infrastructure financing. See Ted Thatcher on Fed Pressure, NVDA Earnings & AI ROI Expectations

·        Apple (AAPL) shares fell 1.6% after Jefferies downgraded the stock to Underperform from Hold and lowered its price target to $263.66 from $285.56. The firm cited concerns about valuation and near-term growth prospects, weighing on sentiment across segments of large-cap technology. See Example Trades: AAPL, ONON, RKLB | Fast Market

·        Taiwan Semiconductor Manufacturing Company (TSM) shares slipped nearly 0.4% after it reported July revenue of approximately $14.5 billion, marking a 45% year-over-year increase driven by demand for AI chips. See Monday's Morning Movers: TSM Revenues Rise, HPE & DKS Upgrades

Angrej Singh and Tom White contributed to this article 

Economic Events (ET), Tuesday, August 10: 

·        06:00 AM – NFIB Business Optimism Index 

·        08:15 AM – ADP Employment Change 

·        10:00 AM – Existing Home Sales 

Earnings Snapshot, Tuesday: 

·        Premarket: Sea Limited (SE), Cardinal Health (CAH), On Holding (ONON), Tencent Music Entertainment Group (TME) 

·        Postmarket: Lumentum (LITE), CoreWeave (CRWV), Super Micro Computer (SMCI), CAVA Group (CAVA), Firefly Aerospace (FLY)

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