US stocks ended mixed on Monday, July 27, 2026, as a significant drop in oil prices and a temporary pause in military hostilities between the US and Iran counteracted a broad retreat in the semiconductor sector. West Texas Intermediate crude for September delivery plunged $6.70, or 7.5%, to settle at $82.61 a barrel, while Brent crude for September delivery dropped $8.42, or 8.7%, to close at $88.36 a barrel. This decline in oil prices was seen as easing near-term cost pressures ahead of the Federal Reserve's interest rate decision.
The downturn in the chip sector saw Nvidia tumble 4.99%, Advanced Micro Devices and Teradyne drop over 5% and over 4% respectively, and Micron Technology shed 2.25%. This retreat was attributed to concerns over circular financing within the AI ecosystem and heightened competition, particularly after Chinese memory chipmaker ChangXin Memory Technologies (CXMT) soared over 500% on its market debut in Shanghai, reaching an estimated market capitalization of nearly $490 billion.
Despite the chip sector's struggles, the Dow Jones Industrial Average rose 262.83 points, or 0.51%, to 52,210.08. The S&P 500 added 1.2 points, or 0.02%, to 7,413.18. Conversely, the Nasdaq Composite Index shed 43.74 points, or 0.18%, to 24,932.08. Seven of the 11 primary S&P 500 sectors finished in the green, led by consumer staples and communication services, which gained 1.58% and 1.46% respectively.
Investors are bracing for a busy week, with the Federal Reserve widely expected to maintain interest rates at current levels, though speculation of a future rate hike is increasing. Additionally, roughly one-third of S&P 500 components are scheduled to release second-quarter earnings, with particular focus on capital expenditure guidance and AI monetization metrics from mega-cap technology leaders like Microsoft, Meta Platforms, Apple, and Amazon.
