U.S. stocks traded cautiously on Monday as investors opened a new week with inflation, Federal Reserve policy, and developments in the Strait of Hormuz firmly in focus. The Dow Jones Industrial Average slipped about 0.2%, the S&P 500 hovered near flat, and the Nasdaq Composite fell roughly 0.3% after all three major indexes finished the previous week higher.
The muted start comes with the major averages still within striking distance of record highs. Investors are balancing optimism from Friday’s surprisingly weak jobs report, which reduced pressure on the Fed to raise rates, against a renewed rise in oil prices and uncertainty over whether negotiations involving Iran will produce a workable agreement for shipping through the Strait of Hormuz.
Market Movers:
- Archer Aviation (ACHR) +18%: Shares surged after the eVTOL developer announced plans to acquire Boeing’s Wisk Aero, SkyGrid, and Insitu subsidiaries, significantly expanding its capabilities across autonomous aviation and unmanned aircraft systems. The transaction also includes a technology-sharing arrangement with Boeing, giving Archer access to a broader portfolio while allowing Boeing to retain exposure to Wisk’s autonomous flight technology.
- Standard Lithium (SLI) +8%: Shares advanced as critical-mineral stocks rallied following the White House’s announcement of more than $2 billion in new mining-related investments and additional funding for workforce development. The initiative lifted sentiment across the sector as investors positioned for stronger domestic production of lithium, rare earths, and other strategically important materials.
- RadNet (RDNT) +6%: Shares climbed after the diagnostic imaging company topped second-quarter expectations and raised its 2026 outlook on strong demand for advanced imaging and digital health services. Revenue jumped 25% year over year to a record $622.7 million, while MRI, CT, and PET/CT volumes all posted double-digit growth.
- Robinhood (HOOD) +2%: Shares rose after the trading platform launched cryptocurrency trading in the U.K., giving eligible customers access to more than 50 digital assets. The rollout expands Robinhood’s international footprint and adds zero-fee crypto trading to its growing suite of products for U.K. investors.
- Niu Technologies (NIU) -15%: Shares plunged after the electric scooter maker reported a wider adjusted loss and weaker margins despite stronger revenue and vehicle sales. Gross margin fell to 16% from 20.1% a year earlier, while the company swung to an adjusted net loss as higher costs pressured profitability.
- Barrick Mining (B) -8%: Shares declined after the gold producer missed adjusted earnings expectations as higher fuel costs, royalties, and weaker grades pushed production expenses higher. The decline came despite stronger revenue and a major agreement with Newmont that resolves disputes surrounding their Nevada Gold Mines joint venture.
- monday.com (MNDY) -7%: Shares fell after third-quarter revenue guidance came in below Wall Street expectations, overshadowing a second-quarter earnings beat. The company continued to report strong AI adoption and rising remaining performance obligations, but the softer near-term outlook weighed on sentiment.
- Kennametal (KMT) -3%: Shares slipped after Morgan Stanley downgraded the industrial manufacturer to Underweight, citing concerns that temporary margin benefits from surging tungsten prices could fade. The firm sees earnings potentially peaking later this year and set a $27 price target, implying meaningful downside from recent levels.
Inflation Data Takes Center Stage
The biggest macroeconomic event of the week arrives Wednesday with the latest Consumer Price Index report. Investors will be watching closely for signs that inflation is cooling enough to justify keeping interest rates unchanged after July’s employment report showed the economy unexpectedly lost 23,000 jobs.
The weak labor data reduced some of the urgency around additional Fed tightening, but inflation remains the other half of the central bank’s mandate. A hotter-than-expected CPI reading could quickly revive expectations for another rate hike, while softer price growth would strengthen the case for an extended pause.
Oil Rises as Hormuz Uncertainty Lingers
Oil prices moved higher Monday as hopes for an imminent agreement over the Strait of Hormuz faded. Brent crude climbed back above $85 per barrel, while U.S. benchmark WTI rose above $80 as investors reacted to signs that negotiations between Washington and Tehran remain fragile.
Iran has indicated that a shipping arrangement may be close, but disagreements over transit conditions and broader geopolitical tensions continue to complicate the outlook. Renewed energy inflation remains an important risk for equities because another sustained oil spike could pressure consumers, corporate margins, and the Fed’s inflation outlook.
AI Earnings Remain in Focus
Although more than 80% of S&P 500 companies have already reported earnings, several important AI infrastructure names remain on the calendar. CoreWeave, Nebius, Cerebras Systems, and Super Micro Computer are among the companies expected to provide fresh insight into demand for data centers, servers, and advanced computing infrastructure.
Super Micro shares moved higher ahead of its report as investors looked for additional evidence that its massive AI server backlog is translating into revenue and improving profitability. The coming results could help determine whether enthusiasm for AI infrastructure can withstand the recent scrutiny surrounding spending levels and returns.
Looking Ahead
Wednesday’s CPI report is likely to be the market’s biggest near-term catalyst, particularly after July’s weak jobs data complicated the Federal Reserve’s policy outlook. A softer inflation reading could reinforce expectations that rates remain unchanged, while another upside surprise would bring the possibility of additional tightening back into focus. Investors will also continue to monitor oil prices, negotiations over the Strait of Hormuz, and the remaining wave of AI infrastructure earnings. With the major indexes still close to record territory, markets may need a favorable combination of cooling inflation, stable energy prices, and resilient corporate results to extend the rally.