The U.S. markets ended slightly lower on Monday, amid renewed concerns over rising tensions between the United States and Iran following recent developments in the Middle East. Sentiments remained downbeat as a report said that U.S. forces have seized an Iranian-flagged cargo ship in the Gulf of Oman. Market participants reacted cautiously to reports that U.S. forces had seized an Iranian-flagged cargo vessel in the Gulf of Oman. Adding to the uncertainty, President Donald Trump indicated that the current truce may not be extended if an agreement is not reached before its expiration later this week. He also stated that the Strait of Hormuz would remain blocked until a deal is finalized. 

On sectoral front, trading activity remained subdued, most of the major sectors ended the day showing only modest moves. Airline stocks underperformed notably, with the NYSE Arca Airline Index declining 1.8% after a sharp 6.4% rally in the previous session. Gold-related stocks also faced pressure, as a pullback in gold prices led the NYSE Arca Gold Bugs Index to fall by 1.3%.

Nasdaq slipped 64.09 points or 0.26 percent to 24,404.39, S&P 500 fell 16.92 points or 16.92 percent to 7,109.14 and Dow Jones Industrial Average was down by 4.87 points or 0.01 percent to 49,442.56.