Stocks Hit Fresh Highs, but Oil Spike Keeps Wall Street in Check

CNBC, the Wall Street Journal, AP, Reuters, and Market Watch contributed to this report.

The rally on Wall Street is still alive – but it’s starting to lose a bit of steam.

The S&P 500 edged up to another record on Monday, rising about 0.1% after briefly hitting a new all-time high earlier in the session. The Nasdaq Composite followed a similar path, also notching an intraday record with a modest gain. The Dow Jones Industrial Average, though, slipped slightly, down around 36 points.

It’s a market that wants to go higher – but keeps getting pulled back by geopolitics.

Oil prices are the main drag right now. Crude climbed sharply after tensions flared again between the US and Iran, with stalled peace talks and fresh disruption around the Strait of Hormuz rattling energy markets.

West Texas Intermediate jumped more than 2% to trade above $96 a barrel, while Brent crude pushed past $108. Not long ago, Brent was hovering near $70 before the conflict escalated – so the surge has been hard to ignore.

The latest hiccup came over the weekend. Donald Trump scrapped plans to send envoys to Pakistan for another round of talks with Tehran, saying negotiations could just as easily happen remotely. Iran, for its part, says no meeting is currently on the calendar.

There are hints of progress. Reports suggest Iran floated a proposal to reopen the strait in exchange for easing pressure, though nothing concrete has landed. For now, traders seem to be waiting for something more solid before reacting.

Investors have largely brushed off the conflict in recent weeks, helped by strong corporate earnings that pushed the market to record territory. The S&P 500 has climbed nearly 13% since late March. Still, oil is back in focus – and it tends to ripple through everything from inflation to interest rates.

That’s why the next few days matter. This is the busiest stretch of earnings season, with several major tech names reporting. At the same time, central banks – including the Federal Reserve – are set to make rate decisions, adding another layer of uncertainty.

For now, the market’s message is mixed. Stocks are holding near record highs. Oil is flashing warning signs. And the broader outlook hinges on whether the situation in the Gulf cools down – or heats up again.