US stock markets opened lower on Monday following reports from Iranian media that the country would cease exchanging information with the United States, triggering a sharp rise in oil prices.

At 10:00 AM New York time, the S&P 500 and Dow Jones Industrial Average were down 0.1%, while the Nasdaq 100 index fell 0.3%. The S&P 500's recent streak of record highs showed signs of easing, although technology stocks continued to advance.

The Tasnim News Agency reported that the information exchange had been suspended in protest of Israel's escalating military operations in Lebanon. On the economic front, boosted by a recovery in new orders and production, US manufacturing activity expanded at its fastest pace in four years in May. This data further fueled market speculation that the Federal Reserve would maintain higher interest rates for a longer period.

The earnings season is drawing to a close, with few companies left to report their results. Artificial intelligence is likely to remain a key market focus, a theme that continues to support stock market gains.

Hewlett Packard Enterprise Company (HPE), Broadcom Inc. (AVGO), and CrowdStrike Holdings, Inc. (CRWD) are companies to watch. Market consensus views these three firms as beneficiaries of the intensifying AI boom. For Hewlett Packard Enterprise, which is scheduled to report earnings after Monday's market close, expectations may have been raised following peer Dell Technologies' strong financial results.

Paul Christopher of the Wells Fargo Investment Institute noted that the AI rally will eventually lose momentum, but its trajectory will be significantly different from the decline during the dot-com bubble of 2000.

Christopher stated, "One of the most significant differences compared to the market peak in March 2000 is that corporate earnings growth over the past period has largely matched the overall market returns we see today."