S&P 500 Closes Lower for Third Straight Day as Earnings Season Kicks Off

The S&P 500 surrendered its session gains Monday to extend its losing streak to three days, closing 0.2% lower. The Dow fell 0.6%, or 305 points, while the Nasdaq dipped 0.05% after trading higher for most of the session.

All three major indexes opened in positive territory. The Nasdaq climbed as much as 1.2% at its intraday peak, with the Dow and S&P 500 rising 0.7% and 0.5%, respectively, according to Dow Jones Market Data.

The reversal reflects investor caution as earnings season intensifies this week. Alphabet, Tesla, and Intel are scheduled to report results, followed by Meta, Amazon, and Microsoft next week. "Relatively flat prices are the market waiting for proof," Lauren Cassidy, CIO at Founders ETF, said. "The market is holding its breath."

Investors also weighed evolving geopolitical tensions between the U.S. and Iran alongside rising oil prices, which some viewed as a potential positive catalyst. However, the combination of uncertainty and the need to see concrete earnings results kept traders from committing to positions heading into what shapes up as a decisive week for tech valuations.