U.S. stocks trade choppily as oil, inflation, and AI earnings shape sentiment

The S&P 500 and the Nasdaq closed down on Monday, dragged lower by declines in the megacap technology stocks including Alphabet, while investors assessed developments in U.S.-Iran negotiations. The Dow closed higher, boosted by the healthcare and industrial sectors. SpaceX tumbled and weighed heavily on the Nasdaq Composite. The Elon Musk-led company launched ‌its first-ever debt offering ⁠on ⁠Monday and said it had about $100.8 billion in cash and cash equivalents as of June 19. Optimism about artificial intelligence has supported Wall Street's recent rally, but analysts noted that more investors have been questioning lofty spending on infrastructure expansion by hyperscalers. Alphabet fell sharply while Meta, Amazon and Microsoft also fell. "This is a very sentiment-driven sector and the group tends to trade together on a day-to-day basis," said Bill Northey, senior investment director at US Bank.Also Read | US stocks: Vimeo owner Bending Spoons seeks $1.62 billion US IPO, sources say "But as we step back ... some of the strongest fundamentals are within the AI data center buildout space. That includes ⁠both the hyperscalers ‌as well as many of the components that go into that continued buildout." The next test for the rally will be Micron Technology's quarterly results on Wednesday. Shares of the memory chipmaker are ⁠up nearly 300% this year. According to preliminary data, the S&P 500 lost 25.41 points, or 0.34%, to end at 7,475.17 points, while the Nasdaq Composite lost 339.67 points, or 1.28%, to 26,178.26. The Dow Jones Industrial Average rose 162.36 points, or 0.29%, to 51,727.06. Oil prices fell as Washington and Tehran agreed on a roadmap toward a final deal within 60 days. U.S. and Iranian officials made "great progress" at the first round of their talks in Switzerland that ended early on Monday, mediators said, although tensions persisted over Lebanon and the Strait of Hormuz. "Energy prices are coming down, which is certainly ‌a catalyst for both the consumer as well as businesses," Northey said. "On the flip side of that, we came out with a very hawkish (Federal Reserve) under new Chair Kevin Warsh, and it led the market to believe that ⁠there will be a more prioritized focus on returning to price stability in the near term." This view on the Fed has lifted U.S. Treasury yields and pressured stock prices lower, he said. A focus this week will be on Thursday's Personal Consumption Expenditures (PCE) data, the Fed's preferred gauge of core inflation. A stronger-than-expected reading could reinforce expectations of a hawkish Federal Reserve, after Warsh underscored the need to curb inflation at last week's meeting. Markets currently expect a 25-basis-point rate hike from the Fed in September, according to LSEG data. Among other movers, Apogee Therapeutics jumped after AbbVie said it would acquire the biotech company for $10.9 billion in cash.

The S&P 500 and the Nasdaq fell on Monday, dragged lower by declines in megacap technology names including Alphabet, while investors also assessed developments in U.S.-Iran negotiations. AI-driven optimism has supported Wall Street's recent rally, but analysts note that investors are increasingly questioning lofty spending by hyperscalers, who are raising funds to support infrastructure expansion. Alphabet tumbled 6.1 percent, while Meta, Amazon and Microsoft fell between 2.3 percent and 4.3 percent. "There's a distinguishing aspect in this market between those who are receiving the checks, like memory and DRAM names, and those who are writing the checks," said David Wagner, head of equity and portfolio manager at Aptus Capital Advisors. "Those who are writing the checks, i.e., the hyperscalers, have underperformed for the majority part of this year." The S&P 500 communication services index fell 4.4 percent, weighed down by declines in Alphabet and Meta. SpaceX declined almost 10 percent, extending losses for a third straight session after its stellar debut. The Elon Musk-led company laun

U.S. stock indexes closed higher on Thursday, with a strong boost from semiconductor shares and easing inflation fears, although investors still priced in interest rate hikes this year from the Federal Reserve. The Philadelphia semiconductor index sharply outperformed the rest of the market as ‌Intel's shares jumped to ⁠a record ⁠high. U.S. President Donald Trump said iPhone maker Apple had agreed to work with Intel to design and manufacture its chips in the U.S. Early in the session, oil prices slid to their lowest levels since early March after the U.S. and Iran signed an interim agreement that extends the April ceasefire by another 60 days to allow the sides time to reach a final deal. Although Trump threatened to resume attacks if Iran failed to honor its commitments, the first ships started sailing through the Strait of Hormuz, where transportation of oil, gas, fertilizer and other cargoes had been disrupted since the start of the war. According to preliminary data, the S&P 500 gained ⁠78.31 points, ‌or 1.06%, to end at 7,498.41 points, while the Nasdaq Composite gained 496.28 points, or 1.87%, to 26,507.05. The Dow Jones Industrial Average rose 70.29 points, or 0.14%, to 51,562.84.Also Read | SpaceX bankers prepare for bond sale of at least $20 billion All three of Wall Street's major indexes tumbled in ⁠the previous session as investors priced in the likelihood of Fed rate hikes, after the central bank's new Chair Kevin Warsh underscored the need to curb inflation and other policymakers signaled higher borrowing costs ahead. "Markets got spooked by Warsh yesterday essentially promising to contain inflation," said Tony Welch, chief investment officer at SignatureFD, but he pointed to easing oil prices and recent strength in earnings and economic data. "All together, the package of data is still supportive whether or not the Fed has become a little bit more hawkish." Traders were betting on a roughly 50% chance of a 25-basis-point rate hike as soon as September and a roughly 20% probability for a 50-basis-point hike, according to CME Group's FedWatch tool. Investors were still ‌assessing Warsh's indication that the Fed would provide less guidance on future policy moves and his stated focus on price stability. Eric Johnston, chief equity and macro strategist at Cantor, said: "The conclusion today is that the Fed has more credibility around inflation." On the data front, Labor ⁠Department data showed the number of Americans filing claims for unemployment benefits fell last week as layoffs remained low. In individual stocks, shares of Accenture tumbled after the company trimmed the top end of its annual revenue forecast. Peers including Cognizant Technology Solutions , Gartner and IBM fell in sympathy. Among other movers, Kroger shares fell after the grocer reported a lower-than-expected profit for the first quarter and kept its annual forecasts unchanged. Shares in Elon Musk's SpaceX fell for a second straight day, after the space and AI company had rallied sharply for the first few days of trading after its market debut last Friday. Thursday also marked the once-in-a-quarter simultaneous expiry of derivatives contracts tied to stocks, index options and futures, also known as "triple witching," which can boost trading volume and aggravate volatility.

The S&P 500 and Nasdaq closed down by more than 1% on Wednesday, as traders bet that the Federal Reserve's next move would be a rate hike after new Fed Chair Kevin Warsh highlighted the need to tame inflation and other policy makers projected ‌rising interest rates ⁠later ⁠this year. The Fed left rates unchanged as was widely expected but new quarterly projections showed nine central bank officials expect at least one rate hike by the end of 2026. The policy statement removed previous language that had flagged the likelihood for rate cuts this year. Breaking with past practices by Fed chiefs, Warsh did not submit an interest-rate-path projection as part of quarterly forecasts. He told reporters the central bank would deliver on price stability. Policymakers had been widely expected to hold interest rates unchanged at the 3.50%-3.75% range as they wrestled with inflation ⁠pressures from ‌the oil-price spike during the Iran war. After the meeting, trader bets that rates would hold steady by year-end had dwindled to 15.7% from 40% on Tuesday, according to CME Group's ⁠FedWatch tool.Also Read | US Federal Reserve keeps interest rates unchanged, projects one rate hike for 2026 Expectations for a 25-basis-point rate hike by December were at nearly 38% while the probability for a 50-basis-point hike was nearly 33%. "There was clearly a hawkish tilt to the Fed's statement and Chair Warsh's comments at the press conference. The main takeaway, in my opinion, is the Fed's focus on the commitment to deliver price stability and the commentary about inflation," said Michael James, managing director and equity sales trader at Rosenblatt Securities. According to preliminary data, the S&P 500 lost 89.59 points, or 1.19%, to end at 7,421.76 points, while the Nasdaq Composite lost 349.14 points, or ‌1.32%, to 26,027.21. The Dow Jones Industrial Average fell 499.18 points, or 0.96%, to 51,494.99. Economic data showed U.S. retail sales increased more than expected in May, with households purchasing more cars and other vehicles even as they paid ⁠higher prices for gasoline. Stocks had rallied sharply from Thursday through Monday as oil prices fell after President Donald Trump announced a preliminary U.S.-Iran peace deal. Oil prices edged back up on Wednesday after Trump said the agreement with Iran was not final and that the war could resume if he is unsatisfied. In individual stocks, CME Group slipped after the exchange operator said its CEO, Terry Duffy, will step down on March 1, and transition to the role of executive chairman. Shares of Allbirds soared after the footwear maker-turned-AI company changed its name to Smartbird and appointed former Amazon executive Nadia Carlsten as CEO.

The Nasdaq Composite and the S&P 500 finished lower on Tuesday under pressure from technology stocks, while the Dow Jones Industrial Average marked its second straight record close. After rallying sharply on Monday on optimism about a U.S.-Iran peace deal, investors in the S&P 500 and Nasdaq took a breather even as oil prices fell to their lowest levels since early March. Shares of SpaceX rallied, but ‌pared earlier gains. For much ⁠of ⁠the session, the rocket and AI company's market value was above that of Amazon and it briefly surpassed Microsoft's value. While falling oil prices offered some support to equities, Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia, said it was too difficult to build on recent steep gains in the heavyweight technology sector without a break. He noted some investor caution ahead of the U.S. Federal Reserve's policy update due on Wednesday afternoon. "We had a big move yesterday in the market," said Luschini, alluding to the S&P 500's 1.65% rally on Monday and Nasdaq's advance of more than 3%. "We're just digesting some of those gains and the setup in ⁠anticipation of ‌the Fed meeting is always a little tentative."Also Read | SpaceX options trading debut draws record volume as investors chase rocket stock According to preliminary data, the S&P 500 lost 41.85 points, or 0.55%, to end at 7,512.44 points, while the Nasdaq Composite lost 301.13 points, or 1.15%, to 26,382.81. The Dow Jones ⁠Industrial Average rose 345.54 points, or 0.67%, to 52,016.57. TECHNOLOGY LAGS, FINANCIALS RISE Investors rotated into economically sensitive sectors and sold richly valued technology stocks during the session with chip stocks falling sharply after soaring in the prior three sessions. Of the S&P 500's 11 major industry sectors, financials and industrials rose. U.S. oil futures settled down 5.8% as some details emerged about the U.S.-Iran interim deal, which is expected to extend a tenuous ceasefire announced in April by another 60 days and reopen the Strait of Hormuz, which Iran has effectively blocked since the U.S. and Israel attacked Iran in February. U.S. President Donald Trump said the agreement would rule out a nuclear weapon for Tehran, while a U.S. official said ‌that it allows Iran to sell oil upon signing. The war had pushed up oil prices since it started in late February, and fanned worries about sticky inflation, which informs the U.S. central bank's policy on interest rates. Investors are widely expecting the Fed to hold ⁠interest rates at its current 3.50% to 3.75% range on Wednesday, though they will pay close attention to new Fed Chairman Kevin Warsh's comments on inflation, unemployment and the economic outlook. Traders see the Fed holding rates through much of the year but have been betting on a roughly 42% chance of a 25-basis-point rate hike in December, according to CME Group's FedWatch tool. In individual stocks, shares of Olin sank after the chemical producer said it would acquire Huntsman in an all-stock deal valued at $2.43 billion. Huntsman shares also fell as the offer stood at a discount to the stock's recent price. Yum Brands shares rose after the fast-food company said it would sell its Pizza Hut chain for $2.7 billion, as it struggles with stiff competition and cautious consumer spending.

The Nasdaq Composite and the S&P 500 lost ground on Tuesday under pressure from technology stocks, while the Dow Jones Industrial Average touched a record high and SpaceX surpassed Amazon's market value to become the fifth-most valuable U.S. company. After rallying sharply on Monday on optimism about a U.S.-Iran peace deal, investors in the S&P 500 and the Nasdaq took a breather even as oil prices fell to their lowest levels since early March. Shares of SpaceX climbed more than 10 percent, helping the AI and rocket company surpass Amazon's market value and briefly top Microsoft's value as its blistering surge continued after its initial public offering. While falling oil prices offered some support to equities, Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia, said building on steep gains in the heavyweight technology sector was too difficult. Luschini said investors are cautious ahead of the U.S. Federal Reserve's policy update due on Wednesday afternoon. "We had a big move yesterday in the market," said Luschini, alluding to the S&P 500's 1.65 perc