U.S. stock indexes closed lower as a 5.1 percent surge in September-dated West Texas Intermediate crude to $82.13 per barrel overwhelmed artificial intelligence-driven gains.
The Dow Jones Industrial Average fell 0.5 percent to 53,414. The S&P 500 dropped 0.4 percent to 7,719, and the Nasdaq Composite declined 0.3 percent to 26,507.
The oil rally reflected stalled U.S.-Iran negotiations. Iran is reportedly nearing a deal with Oman but has declined to resume direct talks with the United States, extending uncertainty over the Strait of Hormuz—a critical shipping route for crude exports.
President Trump said Sunday the U.S. was "semi-negotiating" with Iran and relied on naval blockades to exert regional pressure.
Bond yields compounded the equity selloff. The 10-year Treasury yield climbed above 4.7 percent, signaling investor concerns about persistent inflation and reducing the appeal of rate-cut scenarios that had supported technology stocks.
Gold futures, a risk-off barometer, added 0.4 percent to $4,416 per ounce on August contracts. The market awaits fresh inflation data scheduled for release later this week.
OPEC+ expects to maintain steady 2026 output after September, offering no relief to crude supply concerns.
