“The market’s mood flipped quickly today,” said a portfolio manager at a New York investment firm. Early gains on Wall Street melted away as semiconductor stocks dragged the S&P 500 back toward even territory, while the Dow Jones managed to cling to modest gains. Investors found themselves caught between falling oil prices and renewed selling pressure on tech shares.
The S&P 500 hovered near 7,410 late Monday morning, retreating from an earlier peak around 7,480. Meanwhile, the Dow Jones Industrial Average stayed resilient, up roughly 180 points or 0.35% at 52,133. The Nasdaq Composite took a hit, dropping about 0.6%. Stocks had jumped initially after the U.S. and Iran announced a pause in hostilities, easing fears over oil supply disruptions and inflation spikes. But that relief was short-lived as worries about chipmakers intensified and traders braced for a packed earnings calendar featuring giants like Microsoft, Meta, Amazon, and Apple.
Oil prices plunged more than 5%, sparking gains in airlines and cruise lines that benefit from lower fuel costs. Energy stocks, however, followed crude lower. Bond yields also eased slightly, with the 10-year Treasury yield dipping to 4.65% from Friday's 4.69%, relieving some pressure on equity valuations tied to borrowing costs. Yet, semiconductor shares emerged as the weak link: Nvidia slid nearly 4%, and Micron tumbled over 6% after Chinese chipmaker CXMT’s strong debut in Shanghai stoked fears of tougher competition ahead.
The S&P 500 now tests a critical technical boundary near its 50-day exponential moving average at approximately 7,411. Holding above this level could pave the way for a push toward 7,480 and even the psychologically significant 7,500 mark. On the flip side, a breach below Monday’s intraday low of 7,383 risks exposing support around 7,300, signaling waning momentum after a string of lower highs. The Dow’s chart looks sturdier, maintaining a position above its 50-period moving average near 52,062 and a neutral relative strength index of 48.5. Staying above 52,000 will be key to keep its rebound intact, with resistance looming at 52,600 and then 53,000. Meanwhile, traders are bracing for the Federal Reserve’s two-day meeting starting Tuesday and its policy announcement Wednesday, which could add to volatility during this already busy week.
