US stocks closed mixed on Monday with the S&P 500 and Nasdaq finishing lower as a selloff in megacap technology names, led by Alphabet, dragged on sentiment. The Dow Jones Industrial Average, however, edged higher, supported by strength in healthcare and industrial shares.
The Dow rose 148.01 points, or 0.29%, to 51,712.71. The S&P 500 slipped 0.37% to 7,472.79 while the Nasdaq Composite fell 1.32% to 26,166.60 as investors rotated out of high-growth tech stocks.
Technology was the main pressure point throughout the session. Alphabet dropped 5% while Meta, Amazon and Microsoft declined between 2.3% and 4.7%. The broader Communication Services sector was the worst performer, falling 3.8%.
Market sentiment was also hit by a sharp decline in SpaceX shares, which tumbled 16.4% in their biggest single-day drop. Despite the fall, the company remains above its IPO price of US$135. The Elon Musk-led firm also unveiled its first debt offering and disclosed cash holdings of about US$100.8 billion as of June 19.
The weakness in tech came even as optimism around artificial intelligence has continued to support markets in recent months. However, investors are increasingly questioning the scale of infrastructure spending among hyperscalers, adding volatility to the sector.
“This is a very sentiment-driven sector and the group tends to trade together on a day-to-day basis,” said Bill Northey, senior investment director at US Bank. He added that longer-term fundamentals tied to AI data centre expansion remain strong across hyperscalers and related suppliers.
Beyond tech, oil prices fell after Washington and Tehran agreed on a roadmap toward a potential deal within 60 days. Early talks in Switzerland were described by mediators as making “great progress”, although tensions remain over key geopolitical flashpoints including Lebanon and the Strait of Hormuz.
Energy market moves fed into broader expectations around inflation and monetary policy. Northey noted that softer energy prices could support both consumers and businesses, although a more hawkish tone from the Federal Reserve under new Chair Kevin Warsh has lifted Treasury yields and added pressure to equities.
Attention now turns to this week’s Personal Consumption Expenditures data, the Fed’s preferred inflation gauge. A stronger reading could reinforce expectations of tighter policy, with markets currently pricing in a 25-basis-point rate hike in September, according to LSEG data.
Elsewhere in corporate news, Apogee Therapeutics surged 46.7% after AbbVie announced a US$10.9 billion cash acquisition of the biotech firm. AbbVie shares rose 6.2% on the news.
Market breadth showed more decliners than advancers on both major exchanges. On the NYSE, declining issues outnumbered advancers by 1.32 to 1, while on the Nasdaq the ratio stood at 1.33 to 1. The S&P 500 recorded 29 new highs and 33 new lows, while the Nasdaq saw 144 new highs and 186 new lows.
Trading volume on US exchanges reached 22.97 billion shares, slightly above the 20-day average of 22.12 billion.
Reuters
