US stocks ended mixed on Monday as a sell-off in semiconductor equities dragged down the Nasdaq, while the Dow Jones Industrial Average gained ground. The tech-heavy Nasdaq Composite shed 43.74 points (-0.18%) to close at 24,932.08, largely due to a sharp sell-off in AI chipmakers. In contrast, the Dow Jones Industrial Average rose 262.83 points, or 0.51%, to 52,210.08, and the S&P 500 edged up 1.2 points, or 0.02%, to 7,413.18.
The decline in chipmakers was fueled by concerns over escalating circular financing within the AI ecosystem and whether massive artificial-intelligence investments will justify lofty valuations. This led to a widespread retreat across the sector, with Nvidia tumbling 4.99% and Advanced Micro Devices and Teradyne dropping more than 5% and more than 4% respectively. Micron Technology also shed 2.25%.
The pressure on technology shares was partially counterbalanced by optimism surrounding a temporary pause in military hostilities between the United States and Iran, which caused crude oil prices to plunge. West Texas Intermediate crude for September delivery fell 7.5% to settle at $82.61 a barrel, and Brent crude for September delivery dropped 8.7% to close at $88.36 a barrel. This sustained pullback in oil prices is expected to ease near-term cost pressures ahead of the Federal Reserve's upcoming interest rate decision, where officials are widely anticipated to maintain target rates at current levels.
