The S&P 500, Dow Jones and Nasdaq Composite all closed lower on Monday as investors awaited retail earnings for clues on the U.S. consumer while oil prices climbed on renewed Iran tensions. Chip stocks rallied even as software names dragged the tech sector down.
The S&P 500 lost 29.00 points, or 0.37%, to close at 7,756.76 on Monday. The Dow Jones Industrial Average fell 263.09 points, or 0.49%, to 53,469.32. The Nasdaq Composite dropped 82.57 points, or 0.31%, to 26,646.60.
Investors held back ahead of quarterly reports from major retailers, with July's weak retail sales and jobs data still fresh in mind. Home Depot reports Tuesday and Walmart follows on Thursday. According to Reuters: "There's a combination of summer doldrums and waiting for data on the consumer." Phil Blancato, chief market strategist at Osaic Wealth, made the remark while describing tepid trading as the market waits for retail earnings for direction.
Oil rises as Iran talks stall
Brent crude futures rose more than 2% on supply worries as the U.S. and Iran appeared no closer to a deal. The gain lifted the S&P 500 energy index 1%. Industrials were the other sector gainer, adding 0.3%. Communications services was the weakest sector, down about 1.6%, dragged lower by Meta Platforms.
Chips gain while software slides
Tech trading stayed volatile as investors weighed whether heavy AI spending will pay off. The PHLX semiconductor index rallied nearly 2%. The S&P 500 Software & Services index fell 2.8% by contrast. Micron rose 4.5% and Applied Materials climbed 5.6%, among the biggest boosts to the S&P 500, while declines in Microsoft provided the index's biggest drag.
Declining issues outnumbered advancers by a 1.7-to-1 ratio on the NYSE, with 213 new highs against 176 new lows. On the Nasdaq, 1,834 stocks rose and 2,921 fell, a 1.59-to-1 decliner-to-advancer ratio.
Source: Investing.com
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