Nasdaq Falls as Oil Prices Surge Ahead of Bank Earnings

U.S. stocks ended mixed on Monday, with the Nasdaq Composite declining as oil prices surged nearly $2 per barrel following deadly attacks on Saudi Arabia’s Riyadh international airport. Investors also remained cautious ahead of major bank earnings and key U.S. inflation data scheduled for this week.

The Nasdaq Composite fell 0.44% to 27,246.00, while the S&P 500 slipped 0.05% to 7,807.79. Meanwhile, the Dow Jones Industrial Average gained 0.38% to finish at 51,853.17, according to preliminary market data.

Oil prices climbed sharply after weekend strikes on Riyadh’s airport raised concerns about Middle East energy supplies. The rally overshadowed expectations of additional Russian diesel exports and President Donald Trump’s discussions about a potential Russia-Ukraine ceasefire covering energy infrastructure.

Wall Street investors are now turning their attention to the third-quarter earnings season. Major U.S. banks, including JPMorgan Chase, Goldman Sachs and Citigroup, are scheduled to report results on Tuesday. Analysts expect S&P 500 companies to deliver 30.6% earnings growth for the quarter, according to LSEG IBES data.

Upcoming September consumer price index (CPI), producer price index (PPI) and retail sales reports could also influence market sentiment. Rising energy costs and U.S. Treasury yields reaching 24-year highs have intensified concerns about persistent inflation.

The Treasury market remained closed Monday for Columbus Day, leaving equity investors without fresh bond market signals.

Energy stocks led gains among S&P 500 sectors, while communication services advanced with support from Meta Platforms. Technology and consumer discretionary stocks underperformed, with the Philadelphia Semiconductor Index dropping to a three-week low.

Microsoft shares gained 0.9% after announcing plans to expand deployment of its proprietary artificial intelligence chips. Salesforce advanced following a Bank of America upgrade to "buy," while eBay benefited from Morgan Stanley adding the company to its top-pick list.

Chipotle Mexican Grill declined after Starbucks dismissed speculation about acquiring the restaurant chain.

Meanwhile, Cleveland Federal Reserve President Beth Hammack urged a relatively rapid shift toward tighter monetary policy to address broadening inflation pressures.

According to CME FedWatch data, traders raised the probability of an October Federal Reserve interest rate hike to nearly 22%, compared with 17.7% on Friday.

Investors remain focused on whether corporate earnings and upcoming economic indicators can support U.S. stock valuations amid rising oil prices and monetary policy uncertainty.