US equities finished mixed on Monday as a sharp pullback in technology stocks offset steadier gains elsewhere. The Dow Jones Industrial Average edged up more than 0.2% while the S&P 500 slipped around 0.4% and the Nasdaq Composite fell 1.3% as selling pressure concentrated in the largest growth names.
The weakness was led by Alphabet, which dropped about 5%. Amazon, Meta and Nvidia also retreated, weighing heavily on the index composition. The pullback came after Friday’s holiday closure, leaving investors to reassess positioning in high valuation tech names at the start of the week.
Sentiment outside equities was steadier, helped by geopolitical developments as US and Iran negotiations showed signs of progress. Tehran described “encouraging progress” in Switzerland talks and both sides agreed a 60 day roadmap towards a potential final deal. That eased concerns around escalation risks in the Middle East.
Energy markets responded to the tone shift, with Brent crude easing towards $78 a barrel and West Texas Intermediate moving near $74.
Individual stock moves stood out in semiconductors, with Micron Technology jumping to a record high after announcing a multi year strategic arrangement with AI developer Anthropic.
The deal ties together long term supply commitments and joint development of high bandwidth memory technology, while Micron’s earlier investment in Anthropic’s funding round added further attention ahead of earnings later this week.
Another standout came from licensing markets as Getty Images more than doubled after announcing a multi year agreement with OpenAI. The arrangement allows use of licensed imagery within ChatGPT responses, though financial terms were not disclosed.
Away from corporate moves, shares of Elon Musk’s SpaceX, traded under SPCX, fell for a third consecutive session, extending recent weakness in the closely watched private market proxy.
Looking ahead, attention is turning to the upcoming US Personal Consumption Expenditures inflation reading, the Federal Reserve’s preferred gauge. The data will feed into expectations around interest rates after recent signals that policy may remain restrictive for longer than previously assumed. Traders remain focused on whether inflation progress can justify any shift in stance in the months ahead.
