The S&P 500 Index ($SPX) (SPY) finished down 0.37% on Monday, while the Dow Jones Industrial Average ($DOWI) (DIA) closed up 0.29%. The Nasdaq 100 Index ($IUXX) (QQQ) fell 0.19%. September E-mini S&P futures (ESU26) slipped 0.34%, and September E-mini Nasdaq futures (NQU26) declined 0.19%.
Stock indexes initially rallied, with the Nasdaq 100 reaching a 2.5-week high driven by strength in chipmakers and AI-infrastructure shares. However, indices gave up early gains and ended mixed. Alphabet led declines among megacap technology stocks, falling more than 5% after announcing that Google DeepMind Vice President Jumper is departing to join Anthropic PBC. Software stocks also weakened, pressuring the broader market.
Energy markets showed volatility as crude oil prices surged overnight when Iran threatened to suspend negotiations and close the Strait of Hormuz following Israeli strikes against Hezbollah in Lebanon. President Trump also signaled potential military action against Iran if attacks on Israel continue. However, crude prices later retreated more than 2% after Iran said progress had been made in diplomatic talks, with the U.S. authorizing a temporary 60-day license allowing Iran to export crude oil.
Defensive sectors felt pressure as hopes for a diplomatic resolution emerged. Lockheed Martin (LMT) dropped more than 3%, while Northrop Grumman (NOC) and Huntington Ingalls (HII) fell over 2%.
Tech weakness was widespread. Palantir (PLTR) fell over 6%, Oracle (ORCL) declined more than 4%, and Intuit (INTU), Atlassian (TEAM), Autodesk (ADSK), and Workday (WDAY) each dropped over 3%. The Magnificent Seven also retreated, with Amazon (AMZN) leading Dow decliners with a drop of more than 4%.
Despite the pullback, chipmakers and AI infrastructure names jumped. The iShares Semiconductor ETF (SOXX) rose more than 2% to a record high. ON Semiconductor (ON) gained over 8%, and Micron Technology (MU) climbed 6% to lead Nasdaq 100 advancers.
Netflix (NFLX) slipped more than 5% following caution from M Science regarding user growth trends.
