U.S. Stocks Slip as Oil Rises, Tech Prepares for Mag 7 Earnings

U.S. stocks eased on Monday as oil rose to two-week highs and investors awaited earnings from Apple, Microsoft, Alphabet, Meta and Amazon. Market participants cited supply uncertainty tied to Iran and a crowded corporate calendar.

West Texas Intermediate crude climbed after reports of disruptions in the Strait of Hormuz and a reported shortfall of about 14 million barrels. Weekend diplomatic statements did not resolve the supply questions and WTI reached its highest level in two weeks.

The so-called Mag 7 large-cap technology companies are scheduled to report results this week, with many reports concentrated on Wednesday. Investors will focus on revenue, margin commentary and guidance for demand, advertising and cloud spending.

Semiconductor stocks pulled back after recent gains as traders reduced exposure ahead of the earnings flow. Financial shares drew renewed attention after most of the sector finished reporting, with Visa and Mastercard still scheduled to report later in the week.

Market internals were mixed. The Nasdaq and S&P 500 gave back some momentum after recent records, while the Dow traded below the 50,000 level. Traders are watching near-term technical levels: the Dow shows short-term support around 49,000 and resistance in the 49,500–50,000 area; the Nasdaq has intraday support near 27,120, a pivot around 27,000 and psychological resistance at 28,000. The S&P 500 was near last week’s record highs and would need a high-volume breakout to confirm further gains.

Elior Manier, a market analyst, wrote that traders were nervously preparing for a make-or-break week given the concentration of mega-cap reports and ongoing geopolitical uncertainty.

Market participants expect corporate results and oil headlines to be the dominant market drivers this week. Any escalation that further restricts shipments through the Persian Gulf could keep crude prices elevated and add volatility to energy-sensitive sectors.