US Stocks Mixed as AI Concerns Mount, Oil Drops 8%
This digest was compiled by AI from multiple sources — links to the originals are below.
US equity indexes traded mixed Monday as a slide in technology shares and a sharp drop in oil prices tugged markets in opposite directions. The Dow Jones Industrial Average gained 0.2%, while the Nasdaq Composite fell 0.7% and the S&P 500 slipped 0.4%. Oil plummeted more than 7% after the US paused military attacks on Iran and ceasefire talks advanced.
Tech Weakness on AI Investment Anxiety
Nvidia shares fell 5.1%, leading Dow decliners, after the company announced a $500 billion AI infrastructure partnership with South Korea's SK Group over the weekend. SK Hynix stock plummeted 9.6% on the news. The VanEck Semiconductor ETF, with $77.2 billion in net assets, slumped 3.7% as investor concerns grew over circular investments in artificial intelligence.
Oil Tumbles as Iran Truce Progresses
West Texas Intermediate crude sank 7.4% to $82.72 a barrel, and global benchmark Brent plunged 8% to $89.06 after the US paused military attacks on Iran for a third day, according to Commerzbank. Mediators from Qatar and Pakistan made progress in bridging gaps between Washington and Tehran toward an interim ceasefire, the Associated Press reported. Oman and Iran continued talks on a Strait of Hormuz transit arrangement, described by diplomats as constructive.
Other Movers and Economic Data
Forte Biosciences shares surged 40% after Belgian-Dutch immunology firm argenx agreed to acquire it for about $2.2 billion. Baker Hughes rose 6.6% on better-than-expected second-quarter earnings. US durable goods orders rose 0.3% in June, missing the 1.8% gain forecast in a Bloomberg survey, after a 4.0% decline in May.
What's Next
Ceasefire negotiations are expected to continue this week, with a potential framework announcement by Friday. However, the durability of any truce remains uncertain given Iran's past threats to close the Strait of Hormuz and the lack of direct US-Iran talks.
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US Stocks Mixed as AI Concerns Mount, Oil Drops 8%
