Stocks on Wall Street closed mixed on Monday as oil prices declined following a pause in attacks between the U.S. and Iran and renewed efforts to restart negotiations to end their conflict. The S&P 500 index rose less than 0.1%, concluding the day with a modest gain after fluctuating between small increases and decreases. The Dow Jones Industrial Average advanced 0.5%, while the Nasdaq composite fell 0.2%, marking its fourth consecutive trading day with losses.

All three major stock indexes are on track to end the current month with declines, which would represent the second straight monthly loss for both the S&P 500 and the Nasdaq. This period of market performance follows two weeks of losses for the benchmark S&P 500.

Oil prices reversed their upward trend from the previous week, when increased fighting between the U.S. and Iran had amplified concerns about global oil supplies. Brent crude, the international benchmark, fell 6.3% to settle at $85.87 per barrel for October delivery, down from over $100 a barrel the prior week. U.S. crude oil for September delivery decreased by 7.5% to $82.61 a barrel.

The conflict between the U.S. and Iran has significantly disrupted, and at times halted, maritime traffic through the critical Strait of Hormuz, impacting the global economy. This disruption has contributed to rising gasoline prices and increased shipping costs for most goods, with businesses often passing these expenses on to consumers.

Market Performance and Key Movers

Technology companies played a significant role in the day's market shifts. Nvidia shares dropped 5%, and Micron Technology fell 2.3%. Conversely, Microsoft saw a 1.9% increase, and Apple’s stock rose 1.2%. The substantial valuations of these companies give them considerable influence over the broader market's direction.

Communications companies were among the day's gainers. Alphabet, the parent company of Google, increased by 2.1%. Charter Communications saw a jump of 6.7%, and Comcast rose 2.3%. Credit card issuers and payment processors also experienced gains, with American Express climbing 2.8%, Capital One Financial adding 2.1%, Visa rising 1.9%, and Mastercard gaining 2.2%.

Bond yields declined, with the 10-year Treasury yield falling to 4.65% from 4.69% recorded late Friday.

Economic Outlook and Upcoming Data

Wall Street is preparing for a busy week with several economic updates and corporate earnings reports expected to influence the market. Reports on consumer confidence are due Tuesday, followed by inflation data on Thursday.

The Federal Reserve's interest rate policy update on Wednesday will be a key focus for investors. The central bank is navigating the effects of rising inflation, exacerbated by the ongoing conflict, and the potential impact of new global tariffs. Analysts anticipate a nearly 36% probability that the Fed will raise interest rates at its upcoming meeting. Higher rates are intended to curb inflation by increasing borrowing costs and moderating economic growth.

Persistent inflation has strained household budgets, with fuel costs particularly impacting consumer spending. Higher gasoline prices could lead to reduced spending on other categories such as apparel and travel. Investors are also closely monitoring corporate earnings reports for indications of consumer stress and to assess whether the year's stock market gains are supported by current profits and future growth projections.

Several notable companies are scheduled to release their latest earnings this week, offering insights into various sectors of the economy. Sherwin-Williams, Boeing, and Visa are set to report on Tuesday. Starbucks and Chipotle will release their results on Wednesday. Technology firms, which have been a major driver of the market's recent performance, are also under scrutiny. Microsoft is expected to report on Wednesday, while Amazon and Apple will release their earnings on Thursday.