U.S. stocks saw a mixed close on Monday, July 28, 2026. The S&P 500 Index managed a slight gain of 0.02% to close at 7,413.18, marking its sixth consecutive record close. This gain, however, was in part due to a broader market rally and significant drops in crude oil prices, which alleviated cost pressures.
Energy stocks were among the biggest laggards, with West Texas Intermediate crude plunging $6.70 (7.5%) to settle at $82.61 a barrel, and Brent crude dropping $8.42 (8.7%) to close at $88.36. This decline in oil prices is seen as positive for the upcoming Federal Reserve meeting, where officials are widely expected to maintain interest rates at current levels.
Chip stocks, however, experienced a widespread retreat due to escalating concerns about circular financing within the AI ecosystem. Nvidia led this decline, tumbling 4.99%. Other semiconductor firms also saw significant drops, with Advanced Micro Devices falling over 5% and Teradyne over 4%, while Micron Technology shed 2.25%. The technology-heavy Nasdaq Composite Index consequently shed 43.74 points, or 0.18%, to 24,932.08.
Despite the chip sector's struggles, seven of the 11 primary S&P 500 sectors ended in the green. Consumer staples and communication services led the gains, rising 1.58% and 1.46% respectively, which helped the broader index inch higher. The Dow Jones Industrial Average also rose by 262.83 points, or 0.51%, to 52,210.08.
Investors are now bracing for a busy week that includes the Federal Reserve's interest rate decision and earnings reports from roughly one-third of S&P 500 components, including tech giants like Microsoft, Meta Platforms, Apple, and Amazon. These reports will be closely watched for capital expenditure guidance and AI monetization metrics, especially after previous aggressive infrastructure spending updates from Alphabet and Tesla caused sector drawdowns. Financial experts highlight that while a bullish response to strong Mag-7 earnings is possible, concerns about AI spending levels and potential rate hikes could lead to continued choppy trading.
