U.S. stocks ended mixed on Monday as investors assessed encouraging developments in U.S.-Iran peace negotiations while weighing mixed performance across technology shares.
The Dow Jones Industrial Average rose 0.29 percent to 51,712.71. The S and P 500 sank 0.37 percent to 7,472.79. The Nasdaq Composite Index shed 1.32 percent to 26,166.6.
Seven of the 11 primary S and P 500 sectors closed higher, led by real estate and energy with gains of 1.38 percent and 1.24 percent, respectively. Communication services and consumer discretionary were the main laggards, declining 3.83 percent and 2.33 percent.
Major technology stocks came under pressure, with notable declines in Alphabet, Amazon, Meta Platforms, and Nvidia. SpaceX tanked 16.43 percent after confirming its first-ever bond sale in a filing, extending losses for a third consecutive session.
"The issue that stands out the most is the idea that the hyperscalers continue to receive an extremely low return on investment on their colossal level of spending on AI," said Matt Maley, chief market strategist with trading firm Miller Tabak.
Another big concern surrounds the issue of "circular investments," with companies investing in each other and doing business with each other, according to Maley.
However, some chipmakers outperformed ahead of upcoming earnings. Micron Technology rose 6.82 percent, while Advanced Micro Devices gained 2.65 percent and Intel advanced more than 5 percent.
Meanwhile, markets continued to monitor the ongoing peace negotiations between the United States and Iran. Iran stated on Monday that there had been "encouraging progress" in talks held in Switzerland and agreed to a roadmap for a final deal within 60 days.
Oil prices fell on the positive diplomatic signals. West Texas Intermediate crude for July delivery dropped 1.78 U.S. dollars, or 2.32 percent, to settle at 74.82 dollars per barrel on the New York Mercantile Exchange. Brent crude for August delivery lost 2.67 dollars, or 3.31 percent, to settle at 77.9 dollars per barrel on the London ICE Futures Exchange.
Looking ahead, investors are preparing for the release of the May personal consumption expenditures price index, the Federal Reserve's preferred inflation gauge. The data comes amid ongoing debate over the likelihood of interest rates remaining higher for longer, following the Fed's more hawkish tone at its latest policy meeting.
U.S. stocks close mixed
