The Dow Jones Industrial Average rose on Monday even as broader equity markets declined, with technology stocks and SpaceX weighing on sentiment while investors assessed developments in US-Iran negotiations and looked ahead to key inflation data.
The S&P 500 fell 0.4%, while the Nasdaq Composite dropped 1.3%.
The Dow added 147 points, or 0.3%, supported by gains in healthcare and industrial stocks, including Caterpillar.
Major technology names were among the biggest drags on the market. Alphabet fell 5% on concerns around artificial intelligence talent departures, while Amazon and Meta Platforms declined 4% and 2%, respectively.
Microsoft also slipped 2%. SpaceX dropped 14%, extending a three-session losing streak.
Micron Technology was a standout performer, rising 5% ahead of its quarterly results due Wednesday.
Other semiconductor stocks also gained, with Advanced Micro Devices up 1% and Intel rising 5%.
Tech weakness drags on major indexes
The decline in megacap technology stocks pushed the Nasdaq and S&P 500 lower, even as select sectors showed resilience.
SpaceX was among the sharpest decliners, falling 14% after launching its first-ever debt offering and disclosing it held about $100.8 billion in cash and cash equivalents as of June 19.
Alphabet, Meta, Amazon, and Microsoft all traded lower, contributing to broad pressure across the technology sector.
Market participants noted that optimism around artificial intelligence has supported recent gains, but concerns are emerging around elevated infrastructure spending by hyperscalers.
Among individual movers, Apogee Therapeutics (APGE.O) surged after AbbVie announced plans to acquire the biotech company for $10.9 billion in cash.
Oil prices fall on Iran negotiations progress
Energy markets also moved lower after mediators Qatar and Pakistan said US and Iranian officials had agreed on a roadmap to reach a final deal within 60 days.
Brent crude futures for August fell 3.31% to $77.90 a barrel, while West Texas Intermediate declined 2.32% to $74.82.
Oil prices extended losses after the US Treasury Department authorized the sale of Iranian oil for 60 days, adding to downward pressure on energy markets.
Inflation data and Fed policy in focus
Investors are now focused on Thursday’s release of the personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge. Economists expect core PCE to rise from April levels, according to FactSet.
A stronger-than-expected reading could reinforce expectations of a more hawkish policy stance, following comments from Chair Warsh emphasizing the need to curb inflation at last week’s meeting.
Following a hawkish Fed meeting last week, market expectations for interest rate hikes have moved forward, with traders now pricing in a possible increase as soon as October.
Markets are currently pricing in a 25-basis-point rate hike from the Fed in September, according to LSEG data.
Attention remains fixed on inflation data that could influence the central bank’s policy path.
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