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WALL STREET STOCKS SLIP WITH SIGNS OF US-IRAN PEACE EFFORTS STALLING

The main U.S. equity indexes are flat to slightly red on Monday after a spate of attacks in the Middle East sent oil prices rallying as it looked like the U.S.-Iran peace process has hit a wall.

Iran's Tasnim news agency reported on Monday that Iran's negotiating team is stopping exchanging messages with the United States through mediators. The agency reported that there would be no talks until Iran's demands on cessation of Israeli operations in Lebanon and Gaza are met and that Iran set its agenda to completely block the Strait of Hormuz and activate other fronts.

Earlier it had looked like equity investors might shrug off rising oil prices even though Iran said it had attacked a U.S. air base following weekend U.S. strikes on Iranian military targets and Kuwait said on Monday it had come under fire, despite a fragile ceasefire and diplomatic efforts to end the three-month war.

Among the S&P 500's .SPX 11 major industry sectors just two are gaining including energy .SPNY, up more than 2%. U.S. crude oil futures are jumping more than 7%.

Meanwhile, airline stocks are diving on the prospect of ballooning jet fuel prices and U.S. carrier JetBlue JBLU.O raised its second-quarter fuel costs forecast on Monday, as shipping disruptions in the Strait of Hormuz entered a fourth month.

The S&P 500 technology sector .SPLRCT is rallying more than 1% with software stocks such as Salesforce CRM.N and ServiceNow NOW.N gaining. But the PHLX semiconductor index .SOX is down ~0.6%. Chip makers such as Intel INTC.O, Advanced Micro Devices AMD.O and Qualcomm QCOM.O are tumbling after AI chip leader Nvidia unveiled a new personal computer chip that would run AI capabilities directly on PCs.

Here is your morning snapshot from 10:15 a.m. ET (1415 GMT):

(Sinéad Carew)

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