Wall Street’s main indices traded cautiously on Monday after last week’s record-setting rally as renewed concerns over stalled US-Iran peace talks and rising oil prices weighed on investor sentiment, Reuters reported.The Dow Jones Industrial Average was nearly flat in early trade, slipping 3.54 points, or 0.01 per cent, to 49,605.62.The S&P 500 rose 11.38 points, or 0.15 per cent, to 7,410.31, while the Nasdaq Composite gained 10.19 points, or 0.04 per cent, to 26,257.27.Both the S&P 500 and Nasdaq touched fresh record highs during the session after ending at all-time highs on Friday.Investor sentiment turned cautious after US President Donald Trump swiftly rejected Iran’s response to a US peace proposal, reviving fears that the 10-week conflict could drag on and continue disrupting shipping through the Strait of Hormuz.The tensions pushed Brent crude prices up nearly 3 per cent.Despite the surge in oil prices, markets have remained resilient in recent weeks, supported by strong corporate earnings, optimism around semiconductor companies and a solid US jobs report.Investors are now closely watching upcoming US inflation data due on Tuesday, which is expected to show a rise in consumer prices amid higher energy costs linked to the Middle East conflict.Producer price data and monthly retail sales figures are also scheduled later this week.“The worry list is long, but the economy keeps proving the bears wrong,” Robert Edwards, chief investment officer at Edwards Asset Management, said.“Big tech has regained its leadership, backed by solid and growing revenue and earnings. These names sit at the center of every major secular theme,” he added.Among sectoral moves, the S&P 500 energy index rose 1.5 per cent as oil prices advanced, while the materials sector gained 1.3 per cent tracking higher precious metal prices.Markets are also awaiting a meeting later this week between Trump and Chinese President Xi Jinping, where discussions are expected on Iran, Taiwan, artificial intelligence, nuclear weapons and a possible extension of a critical minerals agreement.The earnings season is beginning to wind down after a strong run led largely by technology companies.Tech networking giant Cisco and semiconductor equipment maker Applied Materials are among major companies scheduled to report this week, while Nvidia and Walmart are due later this month.Among stocks, Intel rose 3.5 per cent after surging 14 per cent on Friday following reports of a preliminary chip-manufacturing agreement with Apple.Qualcomm jumped 8.6 per cent to a record high.Fertiliser maker Mosaic fell 2.1 per cent after withdrawing its annual phosphate production forecast.Fox Corp gained 4 per cent after reporting third-quarter revenue above Wall Street expectations.Airline stocks came under pressure as rising oil prices threatened margins. Southwest Airlines, Delta Air Lines, Alaska Air and United Airlines fell between 1.8 per cent and 2 per cent.
