US stock markets experienced a mixed day on Monday. The S&P 500 slipped 0.28% to 7,652.86, and the Nasdaq Composite fell 0.76% to 25,980.19. In contrast, the Dow Jones Industrial Average rose by 140.15 points, or 0.26%, reaching 53,417.16. This marked the Dow's potential for back-to-back daily gains for the first time since August 5, with Visa being the top performer, up 2.5% and contributing 56 points to the index, while Caterpillar was the worst, down 2.4% and contributing 121 points to the downside. The broader market sentiment was affected by a decline in technology and semiconductor stocks.
Chip stocks were a significant drag on the market, with Micron Technology shedding 5.8%, and Advanced Micro Devices and Broadcom pulling back more than 3% and 2% respectively. The iShares Semiconductor ETF (SOXX) slid 2.7%. Other notable tech declines included Coherent and Lumentum, both dropping over 4%, Sandisk, down 6%, Corning, down almost 3%, and Seagate Technology, which fell 6.5%. Sandisk was the worst-performing stock in the S&P 500, down 6.7%, while Seagate Technology, Micron Technology, and Western Digital were among the worst in the Nasdaq-100, all down at least 5%.
Oil prices experienced a decline on Monday, even after the US introduced its toughest-ever sanctions campaign against Iran. West Texas Intermediate futures, the US benchmark, fell approximately 2.5% to $84.89 per barrel, and Brent crude, the international benchmark, lost 2.5% to $92.06 a barrel. This drop in energy costs contributed to a slight ease in Treasury yields. Meanwhile, Bitcoin continued its upward momentum, rising 1.7% to $78,695.51, and Ether gained 0.7% to $2,468.36.
Looking at sectors, six of the 11 S&P 500 sectors were higher, with consumer staples leading, up 1.4%, while information technology lagged, down 1.3%. For August month-to-date, major averages were higher across the board; the Dow was on track for its fifth consecutive positive month, and the S&P 500 and Nasdaq Composite were poised for their first positive month in three. Healthcare led sector gains in August, up 7.1%, while utilities lagged, down 3%.
Analysts highlighted upcoming events such as Nvidia's earnings report, which could significantly impact the market's momentum. Treasury Secretary Scott Bessent's efforts to lower long-term yields and economic data were also cited as factors influencing market sentiment. Concerns about AI technology's sustainability and potential price hikes for AI-related chips were noted as factors contributing to the decline in tech stocks.
