US stocks traded unevenly on Monday as investors entered one of the busiest weeks of the quarter with major technology earnings and a Federal Reserve interest rate decision ahead, while a sell-off in chip stocks weighed on the Nasdaq.
The Dow Jones Industrial Average gained almost 0.5%, while the S&P 500 was little changed. The Nasdaq Composite slipped nearly 0.2% after a volatile week that pushed major indexes lower as investors reassessed the outlook for artificial intelligence spending.
Chip stocks led the decline, with Nvidia shares falling nearly 5% and dragging the wider semiconductor sector lower. The move pushed Apple back ahead of Nvidia as the world’s most valuable listed company, while AMD dropped more than 5%, Micron declined over 2% and SK Hynix fell more than 7%.
Investor concerns increased after reports suggested Nvidia could support up to $250 billion in funding for OpenAI to lease computing power linked to a US data centre project. The arrangement raised questions over so-called circular financing, where suppliers also become major investors in their customers.
ASML shares also came under pressure, falling more than 5% after The Information reported that a Chinese state-backed company had started mass-producing a key component used in chipmaking equipment.
The weakness in technology shares was partly offset by lower oil prices, which eased some pressure on markets ahead of Wednesday’s Federal Reserve decision. The central bank is widely expected to keep interest rates unchanged as officials continue monitoring inflation, although the meeting remains one of the less predictable policy decisions in recent years.
Attention is also turning to a packed earnings schedule, with Microsoft, Meta Platforms, Apple and Amazon among the major companies reporting this week. Investors will be watching closely for updates on capital expenditure plans and future artificial intelligence spending after recent concerns over the returns from large technology investments.
Last week’s technology sell-off followed results from Alphabet and Tesla, where investors focused less on quarterly performance and more on rising spending commitments. Alphabet reported a strong quarter but increased its capital expenditure outlook, while Tesla chief executive Elon Musk described 2026 as a “massive capex year” as the company targets investment in Optimus robots, robotaxis and data centres.
The Dow’s gains showed some resilience despite pressure across parts of the technology sector, while the wider market awaited further earnings signals and the Federal Reserve’s latest policy decision.
