Dow Jones Holds Gains While S&P 500 Turns Negative on Semiconductor Weakness
On Monday, the U.S. stock market opened strongly amid news of a potential ceasefire between the U.S. and Iran that led to falling oil prices. However, optimism faded as semiconductor stocks came under pressure due to developments in China's chip industry. The Dow Jones Industrial Average held modest gains by midday while the S&P 500 turned negative after an early rise. The Nasdaq Composite erased its morning gains entirely amid a broad sell-off of tech and semiconductor names like ASML, Nvidia, AMD, SK Hynix, and Micron Technology. This was triggered by news that ChangXin Memory Technologies had gone public in Shanghai with a valuation near $490 billion and that Chinese firms were mass-producing DUV lithography machines—technology previously dominated by Western companies. The week ahead is set to be volatile as the Federal Reserve announces its rate decision on Wednesday, followed by earnings reports from major tech firms including Microsoft, Apple, Amazon, and Meta. These developments will provide insight into AI infrastructure spending at a time when investors are questioning whether returns justify costs.
Tickers: $AAPL $AMD $ASML $CAT $GOOGL $MSFT $MU $NVDA $SKHYV
Topics: Dow Jones Industrial Average Nasdaq Composite oil prices S&P 500 semiconductors