U.S. Markets Mixed as Tech Weakens and Oil Prices Retreat

Wall Street’s Uneven Session
U.S. stocks closed Monday on a divided note, with industrial strength lifting the Dow Jones Industrial Average while technology losses dragged down the Nasdaq and S&P 500. The Dow gained 148 points (0.3%), supported by resilient industrial shares. In contrast, the S&P 500 slipped 0.4%, and the Nasdaq Composite fell 1.3%, reflecting heavy selling in major technology names.

Oil Prices Ease After Diplomatic Progress
Crude oil prices dropped sharply following weekend talks between Washington and Tehran aimed at easing tensions. Brent crude settled at $77.52 per barrel, down 3.2%, while U.S. benchmark crude fell 2.6% to $73.86. Hopes of reopening the Strait of Hormuz to tanker traffic raised expectations of more stable global supply.

Inflation Concerns Keep Yields Elevated
Despite the decline in oil, bond yields continued to rise as investors anticipated tighter monetary policy. The 10‑year Treasury yield climbed to 4.50%, up from 4.46% late last week. Markets now price in a nearly 90% chance of at least one Federal Reserve rate hike before year‑end, with inflation data due later this week expected to show consumer prices accelerating.

Tech Sector Under Pressure
High yields weighed heavily on growth stocks. Alphabet, Amazon, and Broadcom each dropped between 4% and 5%, while SpaceX plunged more than 16% after a volatile post‑IPO run. The sell‑off underscored investor caution toward richly valued companies in the artificial‑intelligence sector.

Corporate Highlights
Not all news was negative. AbbVie surged over 6% after announcing a major acquisition of Apogee Therapeutics, a deal worth nearly $11 billion. Apogee’s shares soared more than 46% on the announcement, reflecting optimism about its pipeline of treatments for inflammatory conditions.

Global Market Moves
International markets showed resilience. The FTSE 100 rose 0.7% following political developments in the U.K., while Japan’s Nikkei 225 and South Korea’s Kospi both hit record highs, driven by strong demand for AI‑related stocks.


Outlook


Monday’s trading highlighted a market caught between optimism over easing oil prices and concern about rising interest rates. With inflation data on the horizon, investors remain focused on whether the Federal Reserve will tighten policy further, a decision that could determine the next phase of Wall Street’s rally.