US Stocks Close Mixed Pressured by Megacaps

The Dow Jones Index went up by 148 points or 0.29 percent on Monday to close at 51713 points. The rise was led by Caterpillar (3.50%), Amgen (2.12%) and JPMorgan (2.01%). On the downside, the weakerst performers were Amazon (-4.62%), Nike (-4.42%) and Microsoft (-3.20%).

US stock indexes closed mixed on Monday as losses in megacap tech stocks offset optimism over progress in restoring energy supply from the Middle East. The S&P 500 fell 0.4%, while the Nasdaq 100 lost 0.2%. Alphabet dropped 5.2% after reports that another top AI researcher left for a rival, deepening concerns over its competitive position in artificial intelligence. Broadcom tumbled 4.7%, Amazon declined 4.4%, Microsoft lost 3.2% and Meta fell 2.7%. SpaceX plunged 16.4% after announcing a new bond sale. In contrast, Micron gained 6.8% after announcing a strategic agreement with Anthropic. Meanwhile, the Dow Jones rose 148 points after Iran said recent talks with the US made significant progress, with both sides aiming to reach a peace deal within two months. Energy prices extended losses on expectations of restored supply, while lingering expectations of a hawkish Federal Reserve following last week’s meeting kept pressure on Treasuries.

US stock indices were mixed as progress in restoring energy supply from the Middle East offset fresh weakness for AI hyperscalers. The S&P 500 and the Nasdaq 100 swung to trade lower, while the Dow maintained its 200 point gain. Iran stated there was major progress in the recent discussions with the US as both sides agreed to reach a peace deal within two months. Prices for energy commodities fell further on hopes of restored supply, although lingering expectations of a hawkish Fed following last week's meetings prevented support for Treasuries. Chip producers extended their historic rally with Micron and Sandisk adding 5%. Banks were also higher with BofA and JPMorgan adding around 2%. In turn, Alphabet sank 10% while Palantir, Amazon, and Meta fell around 4% on concerns over soaring AI capex. Likewise, SpaceX sank 5% after announcing a new bond sale, although it remains 40% above its IPO. AbbVie added 1% after agreeing to buy Apogee Therapeutics in a $10.9 billion cash deal.