US equity indexes remained in decline after midday Monday, albeit off session lows, following a virtual G7 meeting to help calm a spike in crude oil prices.
The Nasdaq Composite fell 0.2% to 22,339.3, after trading higher briefly earlier in the session. The Dow Jones Industrial Average fell 0.9% to 47,063.5, and the S&P 500 slid 0.5% to 6,703.8.
Technology was the sole gainer. Broadcom (AVGO), ASML (ASML), and Micron Technology (MU) were among semiconductor companies dominating the top in a category with a market capitalization of more than $200 billion, according to data compiled by Finviz.
Following the meeting of finance ministers, the G7 said "we stand ready to take necessary measures, including to support global supply of energy such as stockpile release."
US President Donald Trump is expected to review a set of options to tame oil prices, Reuters reported.
Apart from releasing reserves in coordination with the G7, other options include restricting US exports, intervening in oil futures markets, waiving some federal taxes and lifting requirements under a US law called the Jones Act that domestic fuel move only on US-flagged ships, sources speaking on condition of anonymity told Reuters.
US Treasury yields were mixed, with the two-year up three basis points to 3.59%. The 10-year yield was little changed at 4.13%.
The CBOE Volatility Index, also known as the fear gauge, was down 5.7% to 27.83, after hitting 35.30 earlier in the session.
Financials and consumer discretionary were among the worst performers among sectors.
West Texas Intermediate crude oil futures were up 4.3% to $94.84 a barrel, after trading as high as $119.48 earlier in the session. The price topped $100 per barrel for the first time since 2022, a sign that the attack on Iran is escalating, according to a Macquarie note. The US-Israeli war on Iran continues to halt shipping through the Strait of Hormuz, cutting around 20-million barrels per day of Persian Gulf exports.
Israel has started a "wide-scale wave" of strikes against what it says is regime infrastructure in three areas of Iran, CNN reported.
"Should the disruption [to oil flows] persist, larger waves of production shut-ins could emerge through the next week across the region, dependent upon relative storage positions," the Macquarie note said. "The final cuts are likely in Saudi Arabia, roughly 20 days from now."
In company news, Warner Bros. Discovery (WBD) is the target of a $110 billion acquisition by Paramount Skydance (PSKY) in which Tencent plans to invest several hundred million dollars as a passive financial backer, Bloomberg News reported Monday, citing unnamed people familiar with the situation. Wells Fargo set Paramount Skydance's ratings at underweight, with a price target of $10. Shares of Paramount Skydance slumped 7.2%, the steepest decline on the S&P 500.
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