Energy sector equities led market advances Monday as crude oil prices surged past $90 per barrel following U.S. military action against Iranian targets over the weekend. Brent crude advanced over 2%, with some data indicating prices exceeding $91 per barrel.
Major energy companies posted significant gains in early trading. Chevron climbed approximately 2%, while Halliburton posted increases of 2.4% to 2.5%. Exxon Mobil registered gains ranging from 1.5% to 1.6%. Occidental Petroleum advanced 1.8%, and ConocoPhillips added 1.3%. Oilfield services provider SLB increased 1.7%, while refinery operators Phillips 66 and Marathon Petroleum rose approximately 1% and 0.6% respectively.
The sector-wide rally reflected investor concerns about potential supply chain disruptions through the Strait of Hormuz, a critical passage for international petroleum transport. The military operation targeted two Iranian rocket launch sites in the region, prompting retaliatory strikes from Tehran against American installations.
Chip manufacturers demonstrated modest gains as August trading concluded. Intel climbed 1.3% and ranked as the most actively traded security in premarket activity, while Nvidia advanced 0.6%. By contrast, software sector stocks faced headwinds, with ServiceNow retreating 2% and Oracle, Salesforce, and Palantir each losing roughly 1%.
Utility stocks declined sharply after California state legislators rejected Governor Gavin Newsom's wildfire liability proposal. PG&E shares tumbled 10% on the news. The legislation aimed to transfer a portion of wildfire liability expenses from investor-owned utility companies to insurance providers, but lawmakers expressed concerns the existing framework could deplete California's wildfire liability reserve fund. Edison International declined 4% and Sempra fell approximately 1% following the legislative outcome.
In other corporate news, Pinterest shares fell 2% after the company announced CFO Julia Brau Donnelly would depart. She will remain through October 30 to facilitate a transition, with Vikram Naidu, Vice President of Finance, assuming interim responsibilities. BioMarin Pharmaceutical climbed 5% after revealing it would receive 20% royalty payments from Ascendis Pharma on sales of yuviwel, a treatment for achondroplasia.
