U.S. stocks moved lower on Monday as investors weighed rising Treasury yields, pressure from oil prices, and shifting expectations for the Federal Reserve. The Dow Jones Industrial Average fell about 0.5%, while the S&P 500 dropped 0.4% after coming off its third consecutive weekly gain.
The Nasdaq Composite slipped roughly 0.3%, though strength in semiconductor stocks helped cushion the decline. With major indexes still hovering near record territory, investors are entering a quieter stretch of economic data while turning their attention toward Fed signals, geopolitical risks, and a packed week of retail earnings.
Market Movers:
- Cerebras Systems (CBRS) +15%: Shares surged after the AI chipmaker disclosed that its hardware will power OpenAI’s new Ultrafast tier for GPT-5.6 Sol, strengthening an already significant relationship between the companies. OpenAI has committed to taking 750 megawatts of Cerebras' capacity by 2028, while the new offering is designed to deliver processing speeds up to 14 times faster than standard mode.
- HIVE Digital Technologies (HIVE) +10%: Shares jumped after its BUZZ HPC business signed a five-year GPU cloud services agreement worth roughly $350 million, adding approximately $70 million in annualized revenue. The contract covers 2,016 Nvidia Blackwell Ultra GPUs and adds to HIVE’s growing pivot toward AI infrastructure, with total annualized BUZZ HPC revenue expected to reach roughly $180 million.
- Diana Shipping (DSX) +9%: Shares climbed after the company withdrew its proposal to acquire the remaining shares of Genco Shipping & Trading following the two sides' failure
- Intuitive Machines (LUNR) +6%: Shares gained after the space company was selected for a multi-satellite communications infrastructure program with an anticipated value of more than $600 million. The award will use Intuitive Machines’ IM-1300 satellite platform and adds another major project to the company’s expanding spacecraft manufacturing pipeline.
- SpaceX (SPCX) +5%: Shares rose as new regulatory filings offered a clearer picture of the company’s institutional ownership following its June IPO, including enormous stakes held by Alphabet, Fidelity, Saudi Arabia’s Public Investment Fund, Nvidia, and others. Alphabet’s original $900 million investment had reportedly grown to roughly $94 billion by late June, highlighting the extraordinary appreciation in SpaceX’s valuation.
- EyePoint (EYPT) -70%: Shares collapsed after the company’s Phase 3 LUGANO trial for Duravyu failed to meet its primary efficacy endpoint in wet age-related macular degeneration. Investors are now looking toward results from EyePoint’s second pivotal Phase 3 study, expected in the fourth quarter, to determine whether the treatment still has a viable path forward.
- JetBlue (JBLU) -5%: Shares fell after Seaport Global downgraded the airline to Neutral from Buy as elevated jet-fuel prices added to concerns about its leveraged balance sheet. The firm warned that another spike in oil could deepen losses and potentially force JetBlue to take on additional debt.
- L3Harris Technologies (LHX) -3%: Shares slipped after the defense contractor abruptly replaced Chairman and CEO Christopher Kubasik with Sam Mehta over conduct the board said was inconsistent with the company’s Code of Conduct. L3Harris stressed that the matter was unrelated to financial reporting, operations, or customer relationships and reaffirmed its 2026 financial outlook.
Treasury Yields Put Pressure on Stocks
Bond yields emerged as another source of pressure Monday, with both the 10-year and 30-year Treasury yields extending recent gains. Concerns surrounding the national debt and the longer-term inflation outlook are keeping upward pressure on borrowing costs even as investors scale back expectations for another near-term Fed rate hike.
Traders have now pushed the probability of a September hike to below one-third following a string of mixed economic signals. July payrolls unexpectedly declined by 23,000, while last week’s CPI and PPI reports showed inflation cooling enough to strengthen the case for the Fed to remain on hold. That combination creates an unusual backdrop for equities. Softer inflation and employment data could keep the Fed sidelined, but persistently elevated long-term yields can still pressure stock valuations — particularly in growth-heavy areas of the market that have already enjoyed substantial gains.
Oil Climbs as Strait of Hormuz Tensions Return to Focus
Energy markets added another layer of uncertainty as tensions surrounding the Strait of Hormuz intensified. Brent crude climbed roughly 2.6% to above $90 per barrel during Monday trading, while WTI crude also advanced as hopes for a near-term resolution between the U.S. and Iran faded. A memorandum of understanding between the two countries expired as negotiations over the critical shipping route remained stalled.
Iran has signaled that it could take a more aggressive stance and potentially pursue tolls for ships moving through the strait, keeping markets focused on the possibility of further disruption to global energy supplies. Oil remains particularly important for the Fed outlook. A prolonged stretch of elevated crude prices could feed back into inflation just as recent CPI and PPI reports have begun to provide policymakers with some relief, potentially complicating the case for keeping interest rates unchanged.
Retail Earnings Put the Consumer Back in the Spotlight
With the earnings season for most large companies winding down, retailers are about to take center stage. Walmart, Target, Lowe’s, and Home Depot are among the major names reporting this week, giving investors a fresh look at household spending and the health of the U.S. consumer. The reports arrive as questions grow about whether the resilient spending seen earlier this year can continue.
Goldman Sachs economists have warned that a boost from unusually strong tax refunds may be fading, with real consumer spending growth potentially slowing to between 1% and 1.5% during the second half of the year. That makes guidance from the big-box retailers particularly important. Investors will be watching traffic, discretionary purchases, pricing, and back-to-school demand for signs that consumers are becoming more cautious as higher borrowing costs and lingering inflation pressure household budgets.
Looking Ahead
Investors will have several major signals to digest as the week progresses. Retail earnings will offer the clearest near-term test of consumer strength, while Wednesday’s Federal Open Market Committee meeting minutes could provide more detail on how divided policymakers remain over the next move in interest rates. For now, the market is balancing encouraging inflation data against rising Treasury yields, elevated oil prices, and renewed geopolitical uncertainty. With stocks still close to record highs, the question is increasingly whether softer Fed expectations can keep supporting valuations — or whether higher long-term rates and signs of slowing consumer demand will finally test the rally.