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U.S. stocks ended lower on Monday, sending oil prices higher, as fresh tensions in the Middle East, which saw Iran hit a South Korean ship in the Strait of Hormuz, raised concerns over continued instability in the region. All three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) declined 1.1% or 557.37 points, to end at 48,941.90 points.
The S&P 500 slid 0.4% to finish at 7,200.75 points. Materials and industrial stocks were the worst performers.
The Materials Select Sector SPDR (XLB) lost 2%. The Industrials Select Sector SPDR (XLI) declined 1.2%. The Energy Select Sector SPDR (XLV) rose 0.9%. Ten of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq fell 0.2% to close at 25,067.80 points.
The fear gauge, CBOE Volatility Index (VIX), was up 7.65% to 18.29. Decliners outnumbered advancers on the S&P 500 by a 2.2-to-1 ratio. A total of 16.3 billion shares were traded on Monday, lower than the last 20-session average of 17.7 billion.
Middle East Tensions Escalate
Concerns grew once again on Monday over the instability in the Middle East after fresh reports of strikes in the Strait of Hormuz. The United Arab Emirates reported that Iran fired a large number of missiles at its oil installations, which were intercepted using its missile alert system.
Also, a massive explosion was reported on a South Korean ship, suggesting that it was still unsafe for vessels crossing the Strait of Hormuz. Meanwhile, Iran said that it blocked a U.S. ship and forced it to turn back after it attempted to pass through the strait.
The S&P 500 and the Nasdaq retreated from their record closing highs attained on Friday, while oil prices jumped following the reports of unrest. The U.S. West Texas Intermediate crude futures jumped 4.39% to settle at $106.42 per barrel on Monday.
Oil prices have already been rising, and the fresh round of tensions saw energy prices surge further.
Earnings Season Continues
The earnings season is in full swing, and a large number of companies reported impressive quarterly results on Monday. However, that was not enough to lift investors' sentiment.
Norwegian Cruise Line Holdings Ltd. ((NCLH - Free Report) ) reported an earnings beat. The company reported first-quarter 2026 earnings of $0.23 per share, beating the Zacks Consensus Estimate of $0.15 per share. However, the company’s shares tumbled 8.6%.
In economic data released on Monday, the Commerce Department's Census Bureau reported that factory orders rose 1.5% in March, its biggest gain since November.
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Stock Market News for May 5, 2026
U.S. stocks ended lower on Monday, sending oil prices higher, as fresh tensions in the Middle East, which saw Iran hit a South Korean ship in the Strait of Hormuz, raised concerns over continued instability in the region. All three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) declined 1.1% or 557.37 points, to end at 48,941.90 points.
The S&P 500 slid 0.4% to finish at 7,200.75 points. Materials and industrial stocks were the worst performers.
The Materials Select Sector SPDR (XLB) lost 2%. The Industrials Select Sector SPDR (XLI) declined 1.2%. The Energy Select Sector SPDR (XLV) rose 0.9%. Ten of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq fell 0.2% to close at 25,067.80 points.
The fear gauge, CBOE Volatility Index (VIX), was up 7.65% to 18.29. Decliners outnumbered advancers on the S&P 500 by a 2.2-to-1 ratio. A total of 16.3 billion shares were traded on Monday, lower than the last 20-session average of 17.7 billion.
Middle East Tensions Escalate
Concerns grew once again on Monday over the instability in the Middle East after fresh reports of strikes in the Strait of Hormuz. The United Arab Emirates reported that Iran fired a large number of missiles at its oil installations, which were intercepted using its missile alert system.
Also, a massive explosion was reported on a South Korean ship, suggesting that it was still unsafe for vessels crossing the Strait of Hormuz. Meanwhile, Iran said that it blocked a U.S. ship and forced it to turn back after it attempted to pass through the strait.
The S&P 500 and the Nasdaq retreated from their record closing highs attained on Friday, while oil prices jumped following the reports of unrest. The U.S. West Texas Intermediate crude futures jumped 4.39% to settle at $106.42 per barrel on Monday.
Oil prices have already been rising, and the fresh round of tensions saw energy prices surge further.
Earnings Season Continues
The earnings season is in full swing, and a large number of companies reported impressive quarterly results on Monday. However, that was not enough to lift investors' sentiment.
Norwegian Cruise Line Holdings Ltd. ((NCLH - Free Report) ) reported an earnings beat. The company reported first-quarter 2026 earnings of $0.23 per share, beating the Zacks Consensus Estimate of $0.15 per share. However, the company’s shares tumbled 8.6%.
Shares of FedEx Corporation ((FDX - Free Report) ) plummeted 9.1% after Amazon.com, Inc. ((AMZN - Free Report) ) said that it was launching Amazon Supply Chain Services, its own freight, distribution, fulfillment and parcel shipping network to businesses. Amazon currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
In economic data released on Monday, the Commerce Department's Census Bureau reported that factory orders rose 1.5% in March, its biggest gain since November.