Wall Street Flat, Market Tests Impact of High Oil
US stock indexes moved mixed and mostly flat on Monday (May 11), as the market weighed the economic risks of high oil prices and the potential for a continuation of the AI-themed rally. The S&P 500, Nasdaq 100, and Dow Jones Industrial Average hovered around their previous closing levels, with both testing record levels.
Sentiment was also clouded by geopolitical developments after US President Donald Trump called Iran's counteroffer to the peace deal "unacceptable," prolonging the conflict that has hampered the flow of tankers and ships from the Persian Gulf region. Despite rising energy prices and bond yields, equities remained near record levels following a rally driven by the earnings season.
Sector rotation was evident in the large technology group: AI hyperscaler stocks weakened, with MetaTrader, Tesla, and Microsoft down 1–2%, while chipmakers gained, including AMD, Nvidia, and Broadcom, which rose around 2%. Amazon and Alphabet also fell slightly amid foreign currency-denominated credit issuance.
Beyond the AI and energy themes, healthcare stocks rallied, with Moderna and Pfizer surging amid growing concerns about a potential hantavirus outbreak. Looking ahead, the market is likely to monitor whether rising energy prices continue and push inflation and yields higher, as this combination could test the resilience of riskier stocks' valuations near recent highs.
Source: Newsmaker.id
