U.S. stocks finished mixed on Monday, with the Dow Jones Industrial Average and the S&P 500 ending higher as declining oil prices helped improve market sentiment, while technology and semiconductor shares remained under pressure.
The Dow advanced 262.83 points (0.51%) to close at 52,210.08, while the S&P 500 edged up 0.02% to 7,413.18. Meanwhile, the Nasdaq Composite slipped 0.18%, ending the session at 24,932.08.
Semiconductor stocks continued to struggle, although they recovered from their intraday lows. The VanEck Semiconductor ETF (SMH) fell more than 2%, extending Friday's losses. AMD declined roughly 5%, Teradyne dropped 4%, and Micron Technology lost around 2%.
Chipmakers faced additional pressure after a report from The Information indicated that China has begun developing deep ultraviolet (DUV) lithography machines, raising concerns over increased competition in the semiconductor industry. Following the report, U.S.-listed shares of ASML, a leading supplier of chipmaking equipment, fell nearly 6%.
Energy markets provided some relief as oil prices tumbled after the U.S. and Iran paused military attacks. Brent crude for September delivery dropped 8.7% to $88.36 per barrel, while West Texas Intermediate (WTI) crude fell 7.5% to $82.61 per barrel.
Investors are now preparing for a pivotal week filled with major market catalysts. Earnings from Amazon, Apple, Meta Platforms, and Microsoft will be closely watched for insights into artificial intelligence spending, especially after Alphabet's recent results raised concerns about AI-related investments. These reports are expected to have a significant impact on semiconductor stocks.
Attention is also turning to the Federal Reserve's interest rate decision on Wednesday. While many economists still expect the next rate hike to come in September, financial markets are increasingly pricing in the possibility of a 25-basis-point increase as early as this week's meeting, according to the CME FedWatch Tool.
