US stocks open mixed as AI optimism counters Iran tensions

US stocks opened mixed on Monday, August 17, as investors weighed optimism around artificial intelligence against renewed tensions in West Asia and assessed the Federal Reserve's policy outlook. The S&P 500 was little changed after posting its third consecutive weekly gain, while the Nasdaq Composite edged higher and the Dow Jones Industrial Average slipped.

The S&P 500 traded around the flatline shortly after the opening bell, while the Nasdaq Composite gained 0.2%. The Dow fell about 123 points, or 0.2%.

Technology stocks provided some support to the market, with Micron Technology rising more than 4%. Chip stocks including Broadcom and Nvidia also moved higher. Investor sentiment around the AI sector was supported by reports of strong growth in artificial intelligence-related business.

Oil prices, meanwhile, moved higher as geopolitical tensions remained in focus. US West Texas Intermediate crude futures rose 0.5% to nearly $83 a barrel, while Brent crude, the international benchmark, gained 0.6% to around $89 a barrel. The move came after a senior Iranian official told Reuters that Iran would shift to an offensive posture if diplomacy with the US fails.

US stock futures mixed as investors await Fed minutes, retail earnings

US stock futures were mixed on Monday, August 17, as investors assessed the Federal Reserve's next policy move and looked ahead to a busy week of retail earnings. The S&P 500 is coming off its third consecutive weekly gain after hitting a fresh record high last week.

Dow Jones Industrial Average futures slipped around 0.1%, while S&P 500 futures traded near the flat line. Nasdaq-100 futures were up around 0.5% after a relatively quiet week on Wall Street.

In individual stocks, Vista Energy shares jumped around 5% in premarket trading after it emerged that billionaire Peter Thiel's hedge fund had acquired a stake in the Argentine oil producer.

Thiel Macro LLC reported owning nearly 1.2 million American Depository Shares of Vista Energy, worth about $76 million, as of the second quarter ended June 30, according to a US Securities and Exchange Commission filing published on Friday.

Investor sentiment has remained supported by a strong earnings season, even as markets navigate ongoing hostilities in West Asia and concerns surrounding the artificial intelligence trade. Softer retail sales data and a relatively mild inflation reading have also lowered expectations for a Federal Reserve rate hike at its upcoming meeting.

The focus this week will be on the Fed's latest meeting minutes, due Wednesday, along with quarterly results from major retailers including Walmart, Target, Lowe's and Home Depot. The earnings are expected to offer clues on consumer spending during the key back-to-school shopping season.

Oil prices will also remain in focus, given their implications for inflation and monetary policy. Brent crude futures rose towards $88 a barrel on Monday, while US Treasury yields had moved higher, with the 10-year and 30-year yields both rising 5 basis points at Friday's close, CNBC reported.

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