The S&P 500 closed lower on Monday as weakness in major technology stocks weighed on the broader market. Investors also closely monitored developments in Iran-U.S. negotiations while awaiting key inflation data that could influence the Federal Reserve’s next policy move.
The benchmark index slipped 0.37% to close at 7,472.79, while the Nasdaq Composite dropped 1.32% to 26,166.60. In contrast, the Dow Jones Industrial Average gained 148.01 points, or 0.29%, supported by a nearly 4% rise in Caterpillar.
Big tech stocks led the market decline. Alphabet fell 5% amid concerns over AI-related talent departures, while Amazon and Meta Platforms lost 4.8% and 2.3%, respectively. Microsoft also declined 3%.
SpaceX remained under heavy pressure, tumbling 16% and extending its losing streak to three consecutive sessions.
On the positive side, Micron Technology surged nearly 7% ahead of its quarterly earnings report due Wednesday. Other chipmakers also advanced, with Advanced Micro Devices rising more than 2% and Intel gaining 5%.
Meanwhile, oil prices declined after Qatar and Pakistan announced progress in U.S.-Iran negotiations, including a roadmap toward a final agreement within 60 days. Additional pressure came after the U.S. Treasury authorized Iranian oil sales for 60 days.
Brent crude futures fell 3.31% to settle at $77.90 per barrel, while U.S. West Texas Intermediate dropped 2.32% to close at $74.82.
Markets are now focused on Thursday’s release of the Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred inflation measure. Economists expect core PCE, excluding food and energy, to show a rise from April levels.
Following last week’s hawkish Fed meeting, expectations for a potential rate hike have shifted forward to as early as October. Investors remain highly attentive to inflation signals that could shape the central bank’s next move.
