-- US equity indexes fell, while crude oil futures jumped amid high-stakes diplomacy aimed at bringing Iran back for a second round of talks in Pakistan.
The Nasdaq Composite fell 0.5% to 24,344.1, with the S&P 500 down 0.3% to 7,101.5, after breaking records late last week when President Donald Trump talked up the likelihood of an Iran peace deal before the end of the current, two-week ceasefire on Tuesday. The Dow Jones Industrial Average fell 0.1% to 49,378.5.
Consumer discretionary, communication services, and technology led decliners intraday. Energy and materials were among the biggest gainers.
Risk appetite is "on the run" to start the fresh trading week, Derek Holt, head of capital markets economics at Scotiabank, said in a note on Monday. Trump, on Friday, appears to have "grossly overstated" progress toward an agreement with Iran, Holt added.
Trump said the ceasefire with Iran ends "Wednesday evening Washington time," adding it's "highly unlikely" he would extend it if a deal is not reached before then, CNN reported Monday.
Vice President JD Vance and top US officials are expected to depart Tuesday for Islamabad, Pakistan, ahead of a potential second round of talks with Iran, CNN reported. Iran is considering attending peace talks, a senior official from the Middle East nation told Reuters on Monday, following moves by Islamabad to end a US blockade of Tehran's ports, a major hurdle for the country under threat of widespread attack to rejoin peace efforts.
The US president said in a Monday phone interview that the second round of talks with Iran is set to begin Tuesday, Bloomberg reported.
West Texas Intermediate crude oil futures jumped 5% to $88.80, and Brent crude futures advanced 4.8% to $95.21.
Most US Treasury yields rose, with the 10-year up 1.8 basis points to 4.26% and the two-year climbed 2.5 basis points to 3.73% as rising crude oil prices fueled inflation worries. Reflecting the potential upside risk to price pressures, gold futures declined 1.2% to $4,822.1 and silver futures dropped 2.5% to $79.78.
In company news, Norwegian Cruise Line (NCLH) dropped 4.2% intraday, among the worst performers on the S&P 500, amid worsening geopolitical risk in the Middle East.
Meta Platforms (META) plans to initiate its planned layoffs for this year on May 20, and more cuts are expected later, Reuters reported, citing people familiar with the matter. The Facebook-owner's shares dropped 2.3% intraday, among the worst performers on the Nasdaq.
Alphabet's (GOOG, GOOGL) Google is negotiating with Marvell Technology (MRVL) to develop two new processors optimized for artificial intelligence inference tasks, The Information reported, citing two people with knowledge of the discussions. Shares of Marvell jumped 4% intraday, the top gainer on the Nasdaq.