The S&P 500 and the Nasdaq closed down on Monday, dragged lower by declines in the megacap technology stocks including Alphabet, while investors assessed developments in U.S.-Iran negotiations. The Dow closed higher, boosted by the healthcare and industrial sectors.
SpaceX SPCX.O SPCX.O tumbled and weighed heavily on the Nasdaq Composite. The Elon Musk-led company launched its first-ever debt offering on Monday and said it had about $100.8 billion in cash and cash equivalents as of June 19. Optimism about artificial intelligence has supported Wall Street’s recent rally, but analysts noted that more investors have been questioning lofty spending on infrastructure expansion by hyperscalers.
Alphabet GOOGL.O GOOGL.O fell sharply while Meta META.O META.O , Amazon AMZN.O AMZN.O and Microsoft MSFT.O MSFT.O also fell. The next test for the rally will be Micron Technology’s MU.O MU.O quarterly results on Wednesday. Shares of the memory chipmaker are up nearly 300% this year.
According to preliminary data, the S&P 500 .SPX .SPX lost 25.41 points, or 0.34%, to end at 7,475.17 points, while the Nasdaq Composite .IXIC .IXIC lost 339.67 points, or 1.28%, to 26,178.26. The Dow Jones Industrial Average .DJI .DJI rose 162.36 points, or 0.29%, to 51,727.06.
Oil prices fell as Washington and Tehran agreed on a roadmap toward a final deal within 60 days. U.S. and Iranian officials made “great progress” at the first round of their talks in Switzerland that ended early on Monday, mediators said, although tensions persisted over Lebanon and the Strait of Hormuz.
A focus this week will be on Thursday’s Personal Consumption Expenditures (PCE) data, the Fed’s preferred gauge of core inflation. A stronger-than-expected reading could reinforce expectations of a hawkish Federal Reserve, after Warsh underscored the need to curb inflation at last week’s meeting. Markets currently expect a 25-basis-point rate hike from the Fed in September, according to LSEG data.
Among other movers, Apogee Therapeutics APGE.O APGE.O jumped after AbbVie ABBV.O said it would acquire the biotech company for $10.9 billion in cash.
Reporting by Abigail Summerville in New York, and Twesha Dikshit and Joel Jose in Bengaluru; Editing by David Gregorio.
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