The three major averages finished Monday's session in the red.

The Dow Jones Industrial Average led the way, falling 557.37 points, or 1.13%, to 48,941.90. The S&P 500 dropped 0.41% to 7,200.75, while the Nasdaq Composite lost 0.19% to 25,067.80.

— Sean Conlon

Energy stocks bucked the broader market's downtrend on Monday.

The S&P 500 sector climbed 0.6%, making it the only sector of the 11 that comprise the index tracking for gains. The S&P 500 as a whole is down 0.4% on the day.

APA led the sector higher, climbing almost 4%. Diamondback and Marathon Petroleum followed, with the former rising almost 3% and the latter gaining nearly 2%.

But SLB capped gains for the sector, as its shares fell more than 2%.

— Alex Harring

Investors should brace themselves for a market pullback in the near future, according to Trivariate Research.

Stocks saw double-digit monthly appreciation in April, the best for the S&P 500 since November 2020, founder Adam Parker said in a note Sunday. It was the 25th best month ever over the last 1167 months, making the rally a once in every 56 months event, he said.

"All of our previous work tells us that trying to make short-term market calls is a Fool's Game. Yet, after a rally this strong, we, and many institutional investors can't help but acknowledge that a pullback after this huge rally seems more likely-than-not," Parker wrote.

"It is just hard to think that we won't have a bad month in the next couple of months."

— Michelle Fox

On Monday, 25 stocks in the S&P 500 traded at new 52-week highs.

Tickers that hit this milestone included:

• Alphabet A share trading all-time highs back to its IPO on Aug. 19, 2004
• Amazon.com trading at all-time high levels since back to its IPO in May 1997
• eBay trading at all-time high levels back to its IPO in September 1998
• Diamondback Energy trading at levels not seen since July 2024
• Vertiv Holdings trading at all-time highs back to its listing on the NYSE via SPAC merger with GS Acquisition Holdings in February 2020
• Cisco trading at all-time highs back to its IPO in February 1990
• Microchip Technology trading at levels not seen since July 2024
• Micron trading at all-time highs back to IPO in June 1984
• NXP Semiconductors trading at all-time highs back to its IPO in August 2010
• ON Semiconductor trading at levels not seen since August 2023

On the other hand, 16 stocks in the index reached new 52-week lows, including:

• Lululemon trading at lows not seen since March 2020
• Tractor Supply trading at lows not seen since May 2022
• Clorox trading at lows not seen since February 2014
• Brown & Brown trading at lows not seen since April 2023
• Medtronic trading at lows not seen since July 2024
• Builders FirstSource trading at lows not seen since January 2023
• Pentair trading at lows not seen since April 2025
• Cognizant Technology trading at lows not seen since November 2022
• Amcor trading at lows not seen since March 2020

— Lisa Kailai Han

Shares of Circle surged after lawmakers over the weekend struck a compromise on the market structure bill known as the CLARITY Act, preserving stablecoin reward programs under certain conditions.

On Friday, key language in the proposed crypto legislation was updated to restrict crypto companies from paying savings account-like interest or yield to users on passive stablecoin deposits – leaving that function to traditional banks. However, the bill does allow rewards as usage-driven incentives that could be tied to activity like trading, transactions or staking, as expected. Read more.

— Tanaya Macheel

Chevron CEO Mike Wirth said fuel shortages are growing worry in some regions of the world as the Strait of Hormuz remains closed due to the Iran conflict.

"I think as people look at the realities of very tight supplies, it's not just a question of price," Wirth told CNBC's David Faber at the Milken Institute Global Conference. "It's actually — can we get the fuel? I think over the course of the next several weeks, we'll see those effects begin to move throughout the system."

Wirth warned it will likely take months for oil exports through the strait to normalize. The sea lane needs to be checked for mines which will take time, Wirth said. And there are hundreds of ships stuck in the Gulf that need to exit and be redeployed around the world, he said.

— Spencer Kimball

SpaceX is expected to debut its shares on the public market at a more than $1 trillion valuation later this year. And although retail and intuitional investors are unlikely to get rich off the IPO, they still may be able to benefit from some "meat on the bone," Altimeter CEO and founder Brad Gerstner told CNBC.

"Buying a company at a trillion dollars in value, or a trillion-and-a-half dollars in value, is not a get rich quick scheme," Gerstner said on CNBC's "Halftime Report" on Monday. "If your hope is that you're going to trade the IPO and double or triple or quadruple your money...it's just unlikely."

The aerospace firm is aiming to IPO at a record valuation of up to $1.75 trillion, posing considerable risks for investors in the public listing. However, retail and intuitional investors could see robust returns on their investments in SpaceX stock if underwriters allocate a larger-than-usual 30% of shares to the cohort.

"I think they'll have plenty of retail and institutional demand so long as the price of the IPO leaves enough meat on the bone that investors can underwrite to two or three years of compounding in that 20% to 30% range," Gerstner said.

He added, "we have to address [the fact that companies are staying private for longer] as a country and make this more accessible to retail investors early in that value creation cycle."

— Liz Napolitano

New York Federal Reserve President John Williams expects disruptions from Middle East tensions to keep inflation elevated and the central bank on hold.

In a speech Monday afternoon, Williams said current interest rate policy leaves the Fed "well positioned" to balance the risks to its dual mandate of stable prices and low unemployment. However, he noted that risks to both sides have become elevated, with inflation likely to stay around 3% this year, a full percentage point above the Fed's goal.

"Right now, the future is difficult to see, and the risks to both sides of our mandate have increased. The extent and duration of the effects of supply disruptions and higher energy prices that are emanating from the Middle East conflict are key factors that will shape the global economic outlook," Williams said in prepared remarks. "We simply can't know how this will play out."

As the New York Fed president, Williams is a permanent voter on the rate-setting Federal Open Market Committee. The committee last week voted 8-4 to keep its benchmark rate on hold, the highest number of dissents in nearly 34 years.

— Jeff Cox

Check out the companies making the biggest moves in midday trading:

• Logistics firms — Shares of logistics companies were under pressure after Amazon said it would launch Amazon Supply Chain Services, its own freight, distribution, fulfillment and parcel shipping business. GXO Logistics shed 11%, UPS fell about 10%, while FedEx and C.H. Robinson each sunk 9%. Amazon shares were up 1%.
• Berkshire Hathaway — Both classes of Berkshire stock gained almost 1% after CEO Greg Abel reassured investors with his solid performance at the annual shareholders meeting on Saturday. Abel and key leaders at the company discussed its recent performance and reviewed opportunities ahead. Abel also said he had no intentions to break up the conglomerate.
• Advanced Micro Devices — The chipmaker slipped nearly 5% after a downgrade from HSBC on Friday. The bank moved its rating to hold from buy on concern for tight semiconductor capacity in 2026, which could limit the company's upside.

The full list is here.

— Christina Cheddar Berk

The United Arab Emirates said Monday it successfully intercepted multiple missiles fired from Iran.

Three "loitering munitions" were "intercepted over the country's territorial waters," said the UAE's Defence Ministry in a translated post on its official X account.

A fourth missile "fell into the sea," said the ministry. The UAE is located on the southern rim of the Persian Gulf, a major chokepoint in the U.S. and Israel's war against Iran.

The reported attack is the first time that the UAE has activated its missile alert system since the U.S. and Iran began a testy ceasefire on April 8. Read more.

— Kevin Breuninger

The Walt Disney Company will report earnings before the bell on Wednesday. But Evercore ISI says investors won't be focused on the company's quarterly results.

Instead, investors will be looking at how new CEO Josh D'Amaro communicates his vision for the future of the company to shareholders, analyst Kutgun Maral wrote in a Sunday note. It's his first opportunity to do so, Maral said, since he took over from Bob Iger in March.

"We expect focus to center on whether management begins to lay out a more integrated model

linking creativity, product, engagement, and monetization across the broader ecosystem," he wrote. "We don't expect a grand roadmap on this call, but a clearer articulation of how Disney+ can evolve into a broader consumer gateway would be important."

Maral reiterated his outperform rating and $142 price target heading into earnings, writing that the risk-reward profile looks favorable. That price target indicates a nearly 38% gain from Friday's close. 

— Davis Giangiulio

The small-cap Russell 2000 index rose 0.2% on Monday and hit a new all-time intraday high.

The rise adds to the index's more than 13% gain this year.

— Sean Conlon

Three-quarters of the S&P 500 have reported earnings for the first quarter, and the gains are outpacing expectations.

First-quarter earnings-per-share are on pace for 25% annual  growth, Bank of America strategist Savita Subramanian wrote in a Monday analysis, noting a 5% beat over April 1 consensus estimates.

"Whereas trends are strongest in big tech, the median stock is tracking healthy EPS growth of 11% year-over-year in 1Q … the highest level since 2021," he said.

The 5% beat is ahead of the long-term average of 3% since 2001 and in line with the 10-year average.

The outperformance continues a macroeconomic trend of higher-than-expected stock valuations over the last two-to-three decades, noted by Federal Reserve researchers.

"Traditional valuation metrics for the U.S. stock market … have been above historical norms for the past 25–30 years," Andrew Atkeson and others observed in a January research paper.

– Tobias Burns

The S&P 500 opened in the red on Monday morning.

The broad market index fell 0.1% shortly after the opening bell, while the Nasdaq Composite traded up 0.1%. The Dow Jones Industrial Average shed 170 points, or 0.3%.

— Sean Conlon

In his debut running Berkshire Hathaway's annual meeting, Greg Abel delivered what many shareholders came to see: a steady hand, a firm grasp of the sprawling conglomerate and just enough of his own style to reassure investors the post-Warren Buffett era is on solid footing.

The reviews from longtime shareholders and professional investors were broadly positive, even as many acknowledged the notable absence of Buffett, whose wit, storytelling and investing acumen have long defined the event.

"Very solid. No misspoke words. Thorough answers," said Steve Check, founder of Check Capital Management. "Nice guy, but we sure don't have the laughs that we had with Warren and Charlie [Munger]." Read more.

— Yun Li and Sarah Min

Check out the companies making the biggest moves premarket:

• Norwegian Cruise Line — The cruise operator dropped 5.5% after reporting first-quarter earnings of 23 cents per share and $2.33 billion in revenue, against consensus estimates for 14 cents and $2.36 billion, according to analysts polled by FactSet. Guidance for the current quarter and full-year was far below expectations, as Norwegian grapples with higher fuel prices due to the U.S.-Iran war.
• Lumentum, Coherent — The photonics companies both rose 3% after Rothschild & Co Redburn began research coverage on the two with buy ratings. Higher optical content needed for artificial intelligence data center networking is set to boost both of the stocks, analysts at the firm wrote.
• Axsome Therapeutics — Shares fell more than 3.5% after Axsome reported a wider-than-expected, first-quarter loss. The biopharmaceutical company lost $1.26 per share compared to analysts' estimate of an 81-cent-per share loss, according to analysts polled by FactSet. Revenue matched estimates at $191 million.

Read the full list here.

— Davis Giangiulio

Video game retailer GameStop announced Sunday it has made an unsolicited, non-binding offer to acquire eBay for $125 per share in a cash-and-stock deal, valuing the e-commerce platform at roughly $55.5 billion.

The offer, split evenly between cash and GameStop common stock, represents a 20% premium to eBay's Friday close of $104.07, and a 46% premium to its closing price on Feb. 4 — when the gaming retail giant started building a stake in the company, GameStop said in its statement.

Shares of eBay surged as much as 13.4% in after-hours trading to around $118, well below GameStop's $125 offer, suggesting investors are skeptical the deal will close.

GameStop CEO Ryan Cohen told CNBC Monday morning that he hasn't started any conversation with eBay's management. Read more.

— Yun Li and Anniek Bao

Crypto stocks rose in early morning trading after Senators Thom Tillis (R-N.C.) and Angela Alsobrooks (D-Md.) reached a bipartisan agreement over the weekend on key language in the crypto market structure bill known as the CLARITY Act.

The updated text restricts crypto companies from paying interest- or yield-like returns on passive deposits, but allows them to offer rewards tied to activity like trading, transactions or staking, as expected.

The move pushed most crypto stocks higher. Coinbase rose 2.5% in premarket trading, while Circle and BitGo jumped more than 4% each. Gemini, which stands to lose as both a stablecoin issuer and a retail platform, was lower by 1%.

Bitcoin was last trading at about $78,000, after topping $80,000 over the weekend for the first time since January.

— Tanaya Macheel

European stock markets swung back and forth on Monday, as U.S. President Donald Trump threatened to increase tariffs on cars and trucks from the European Union, rattling the continent's auto sector.

The pan-European Stoxx 600 had slipped 0.46% by 10:30 a.m. in London, reversing its early morning gains. In Frankfurt, the DAX was flat, while in Paris the CAC 40 fell 0.94%, as Milan's FTSE MIB also slipped 0.81%.

In London, the FTSE 100 is closed for the U.K. early spring bank holiday.

Nokia surged 7% in morning trade, after Inseego said Thursday it would acquire the Finnish telco mainstay's fixed wireless access business. Shares in Nokia have rallied more than 100% since the start of the year.

On the flipside, utilities and autos saw the biggest losses in morning trade, down 1.1% and 0.9%, respectively.

Auto parts maker Continental tumbled to the bottom the European index, shedding 4.1%, as investors weighed Trump's latest tariff plans on the sector. The European Commission said it was keeping its options in terms of its response.

— Hugh Leask

South Korean stocks rose Monday to hit a fresh record, following their strongest monthly gain in 28 years, as investors weighed the latest development around the Middle East conflict.

The U.S. would attempt to "free" stranded ships affected by the Strait of Hormuz closure since the start of the Iran war, U.S. President Trump said in his Truth Social post Sunday.

Asia-Pacific indexes mostly rose. The Kospi index ended Monday's session 5.12% higher at 6,936.99. Samsung Electronics and SK Hynix both rose to record intraday highs, gaining 5.44% and 12.52% respectively, buoyed by positive sentiment following U.S. tech earnings.

Australia's S&P/ASX 200 was the main laggard in Monday's trade, declining 0.37% to 8,697.10.

Hong Kong's Hang Seng index gained 1.26% in its last hour of afternoon trade, while India's Nifty 50 advanced 0.44%.

Markets in Japan and China were closed for a public holiday.

Oil prices were volatile as investors continued to assess President Trump's "Project Freedom" plan. West Texas Intermediate futures for June delivery rose 0.98% to $102.92 per barrel in the early hours of Monday ET. International benchmark Brent crude futures for July were up 1.07% to $109.31 per barrel.

— Justina Lee

South Korean stocks rose Monday to hit a fresh record, following their strongest monthly gain in April, as investors weighed tensions between Iran and the U.S. and a U.S. plan to reopen shipping in the Strait of Hormuz.

The Kospi index rose 4.26%. Hong Kong's Hang Seng index gained 1.8%, while Australia's S&P/ASX 200 fell 0.28%.

Markets in Japan and China are closed for a public holiday.

Oil prices fell following the announcement of President Donald Trump's "Project Freedom" plan to attempt to "free" stranded ships affected by the Strait of Hormuz closure since the start of the Iran war. 

West Texas Intermediate futures for July delivery fell 0.26% to $101.68 per barrel as of 10:08 p.m. ET. International benchmark Brent crude futures was 0.13% lower at $108.03 per barrel.

— Justina Lee

This week, 121 companies in the S&P 500 — or nearly a quarter of the index — are on the docket to report their latest earnings.

Here are some of the companies posting earnings this week:

• Monday: Palantir Technologies, Paramount Skydance, Diamondback Energy, Pinterest, Norwegian Cruise Line, Tyson Foods
• Tuesday: Pfizer, DuPont, PayPal, Anheuser-Busch InBev, Marathon Petroleum, Life Time Group, Duke Energy, Shopify, Advanced Micro Devices, Super Micro, Electronic Arts
• Wednesday: Walt Disney Co., CVS Health, Kraft Heinz, Marriott, Uber Technologies, Arm Holdings, Warner Bros. Discovery, DoorDash, Snap, Whirlpool
• Thursday: McDonald's, Shake Shack, Shell, Datadog, TripAdvisor, Papa John's, Expedia, Gilead Sciences, Wynn Resorts, Airbnb, Affirm Holdings, Block, Lyft, Coinbase, Sony
• Friday: Toyota Motors, Nintendo, AMC Networks, Wendy's

— Lisa Kailai Han and Robert Hum

Take a look at some of the economic data releases on the docket for this week:

Monday May 4

• 10:00 a.m. Durable Orders final (March)
• 10:00 a.m. Factory Orders (March)

Tuesday May 5

• 9:45 a.m. S&P Global PMI Services final (April)
• 10:00 a.m. ISM Services PMI (April)
• 10:00 a.m. JOLTS Job Openings (March)
• 10:00 a.m. New Home Sales (March)

Wednesday May 6

• 8:15 a.m. ADP Employment Survey (April)

Thursday May 7

• 8:30 a.m. Initial Claims (05/02)
• 8:30 a.m. Unit Labor Costs preliminary (Q1)
• 8:30 a.m. Productivity preliminary (Q1)
• 10:00 a.m. Construction Spending (March)
• 3:00 p.m. Consumer Credit (March)

Friday May 8

• 8:30 a.m. Hourly Earnings preliminary (April)
• 8:30 a.m. Average Workweek preliminary (April)
• 8:30 a.m. Manufacturing Payrolls (April)
• 8:30 a.m. Nonfarm Payrolls (April)
• 8:30 a.m. Private Nonfarm Payrolls (April)
• 8:30 a.m. Unemployment Rate (April)
• 10:00 a.m. Michigan Sentiment preliminary (May)
• 10:00 a.m. Wholesale Inventories (March)

— Sarah Min and Lisa Kailai Han

Stock futures were trading higher on Sunday evening.

S&P 500 futures and Nasdaq 100 futures both added 0.2% shortly after 6 p.m. ET. Futures tied to the Dow Jones Industrial Average rose 102 points, or 0.2%.

— Lisa Kailai Han