WS Investor
17 Aug 2026, 17:25
S&P 500 Slips as Energy Leads While Consumer and Communication Stocks Weigh
U.S. stocks traded lower Monday afternoon, with weakness across consumer-related and communication services shares outweighing gains in energy and selected technology stocks.
The S&P 500 fell 0.31% to 7,761.71 as of around 1:21 p.m. ET, with seven of the index’s 11 major sectors trading in negative territory.
Energy was the strongest sector, rising 0.75%, as renewed U.S.-Iran tensions and uncertainty surrounding the Strait of Hormuz supported crude oil prices and energy shares. Industrials followed with a 0.42% gain, while health care added 0.09%.
Information technology was narrowly positive, up 0.06%, but the headline number masked substantial strength among semiconductor and memory stocks. Sandisk, Micron and Marvell were among the notable gainers as enthusiasm around AI infrastructure and memory demand continued to support chipmakers.
Consumer and Communication Stocks Lead Declines
Communication services was the session’s weakest S&P 500 sector, falling 1.54%. Consumer staples dropped 1.37%, while consumer discretionary declined 1.27%. Real estate, utilities, materials and financials also traded lower.
The weakness comes as investors remain cautious about the U.S. consumer following Friday’s disappointing retail-sales data, while markets await earnings from major retailers including Walmart, Target and Home Depot for additional evidence on household spending conditions.
Interest rates are also back in focus. The 10-year Treasury yield moved toward 4.70% after the New York Fed’s Empire State Manufacturing Index climbed to 20.6 in August, well above expectations of 10.6. The stronger economic reading adds another layer of uncertainty to the Federal Reserve outlook.
Monday’s sector performance shows a distinctly defensive and selective market rather than a broad selloff. Energy and AI-related semiconductor strength are providing support, but weakness across consumer-oriented sectors and communication services is keeping the S&P 500 in negative territory.
U.S. stocks traded lower Monday afternoon, with weakness across consumer-related and communication services shares outweighing gains in energy and selected technology stocks.
The S&P 500 fell 0.31% to 7,761.71 as of around 1:21 p.m. ET, with seven of the index’s 11 major sectors trading in negative territory.
Energy was the strongest sector, rising 0.75%, as renewed U.S.-Iran tensions and uncertainty surrounding the Strait of Hormuz supported crude oil prices and energy shares. Industrials followed with a 0.42% gain, while health care added 0.09%.
Information technology was narrowly positive, up 0.06%, but the headline number masked substantial strength among semiconductor and memory stocks. Sandisk, Micron and Marvell were among the notable gainers as enthusiasm around AI infrastructure and memory demand continued to support chipmakers.
Consumer and Communication Stocks Lead Declines
Communication services was the session’s weakest S&P 500 sector, falling 1.54%. Consumer staples dropped 1.37%, while consumer discretionary declined 1.27%. Real estate, utilities, materials and financials also traded lower.
The weakness comes as investors remain cautious about the U.S. consumer following Friday’s disappointing retail-sales data, while markets await earnings from major retailers including Walmart, Target and Home Depot for additional evidence on household spending conditions.
Interest rates are also back in focus. The 10-year Treasury yield moved toward 4.70% after the New York Fed’s Empire State Manufacturing Index climbed to 20.6 in August, well above expectations of 10.6. The stronger economic reading adds another layer of uncertainty to the Federal Reserve outlook.
Monday’s sector performance shows a distinctly defensive and selective market rather than a broad selloff. Energy and AI-related semiconductor strength are providing support, but weakness across consumer-oriented sectors and communication services is keeping the S&P 500 in negative territory.
