U.S. stock indexes traded mixed on the day, with the S&P 500 slipping while the Dow edged higher and the Nasdaq 100 lagged. Early gains faded as megacap technology and parts of software declined, offset by strength in semiconductor and AI-infrastructure names. Market direction was also influenced by shifting expectations around interest rates and a volatile oil complex tied to developments in U.S.-Iran talks.
By midday, the S&P 500 was down 0.40%, the Dow Jones Industrial Average was up 0.27%, and the Nasdaq 100 was down 0.30%. S&P 500 and Nasdaq 100 futures for September were also lower, indicating a cautious tone after an early move higher.
Key takeaways
- Price move: The S&P 500 fell 0.40% while the Dow rose 0.27% and the Nasdaq 100 declined 0.30%.
- Catalyst: Alphabet slid more than 6% after Google DeepMind Vice President Jumper announced a move to Anthropic PBC, while broader software weakness pressured technology-heavy benchmarks.
- Market reaction: Semiconductor and AI-infrastructure stocks rallied, with the SOXX exchange-traded fund up more than 2% to a record high, helping limit downside.
- Rates and geopolitics: Treasuries weakened as investors digested expected supply and prior Fed messaging, while oil prices reversed after reports of “major progress” in talks between Iran and the U.S.
What drove the move
Megacap pressure led the downside in parts of technology. Alphabet fell more than 6% after announcing that Google DeepMind Vice President Jumper is leaving to join Anthropic PBC. The pullback weighed on the broader complex of megacap technology stocks and contributed to weakness across software names.
Software stocks were also a drag. Palantir Technologies shares fell more than 4%, while Intuit and Oracle were down more than 2%. Multiple cloud and enterprise software peers—including Microsoft, ServiceNow, Salesforce, Atlassian, Autodesk, Datadog, and Workday—were lower by more than 1%, reinforcing concerns that the software segment was losing momentum.
Despite the drag from software and parts of megacap, the tape improved in chips and AI infrastructure. The semiconductor and equipment complex climbed, with the iShares Semiconductor ETF up more than 2% and recording a new record high. Several individual names surged, supporting the index-level bid.
Market reaction across sectors
The day’s sector performance reflected a rotation rather than a broad-based selloff. Chipmakers and AI-infrastructure names gained ground, while software and some defense-related equities retreated.
Among semiconductors, Sandisk rose more than 6% to lead Nasdaq 100 gainers, and ON Semiconductor climbed more than 6%. Micron Technology and Intel were up more than 4%, with additional strength across NXP Semiconductors, Microchip Technology, KLA, and Seagate. Even as software weakened, investors leaned into the hardware and semiconductor theme, helping the broader market stabilize after an early rise.
Defense companies slid after Iran said there was “major progress” in all-night discussions with the U.S. over a peace deal. L3Harris Technologies, Northrop Grumman, Lockheed Martin, Huntington Ingalls Industries, and RTX were all down more than 1% to more than 2%.
Cryptocurrency-exposed equities also moved higher. Bitcoin was up more than 2%, and shares of MARA rose more than 9%, while Coinbase Global, Riot Platforms, and Strategy were up more than 1%.
Oil, geopolitics, and rates in the background
In early trading, crude oil jumped more than 2% after Iran threatened to suspend talks and close the Strait of Hormuz following Israeli attacks against Hezbollah in Lebanon. President Trump also threatened military action against Iran if Hezbollah militants continued attacking Israel, adding to near-term risk premia.
However, oil’s advance faded after Iran said there had been “major progress” in all-night discussions with the U.S. over a peace deal. Reports also pointed to a 60-day ceasefire extension stemming from the interim agreement and to Iran’s opening of the Strait of Hormuz. Markets further referenced a joint statement from Pakistan and Qatar describing “encouraging progress,” along with a plan to establish a “high-level committee” and working groups covering nuclear issues and sanctions. A de-confliction process was also cited to help ensure cessation of military operations in Lebanon.
Interest-rate markets were another influence. September 10-year Treasury notes fell by 9 ticks, and the 10-year yield rose about 3.6 basis points to 4.489%. The report cited weakness driven partly by carryover from the Fed’s projection of higher interest rates later in the year, while also pointing to supply pressures as the Treasury prepared for a larger auction calendar beginning with a Tuesday sale of 2-year notes. European government bonds were lower in yield, and ECB President Christine Lagarde said the ECB does not need to respond more forcefully to the Middle East conflict because inflation is expected to return to target over the medium term.
Notable stock moves and deal activity
- Ligand Pharmaceuticals: Fell more than 8% after announcing its intention to offer $550 million of convertible senior notes due 2031 in a private placement.
- Echostar (via DISH DBS): Dropped more than 4% after DISH DBS said its interest payment on notes due June 1 would be delayed.
- Apogee Therapeutics: Rose more than 46% after AbbVie agreed to acquire the company for $10.9 billion.
- Super Micro Computer: Advanced more than 15% after GF Securities upgraded the stock to buy from hold.
- Definium Therapeutics: Jumped more than 49% after meeting its primary endpoint in a Phase 3 study for DT120 in adults with major depressive disorder.
- Fervo Energy: Increased more than 8% after reaching an agreement with Pacific Northwest National Laboratory and Nvidia to develop a digital twin platform for Enhanced Geothermal Systems technology.
- Acrosa: Rose more than 7% after a report said CRH is nearing a deal to acquire the company.
Stocks also saw catalysts beyond corporate headlines. Baldwin Insurance Group gained more than 21% following a JPMorgan upgrade to overweight from neutral. Fervo and other energy-tech names rose on project and partnership developments, while merger speculation lifted Acrosa on reporting tied to potential acquisition talks.
Investors next watch how the mix of earnings, rates expectations, and geopolitics continues to steer trading. Additional corporate updates scheduled for June 22 include Lifezone Metals Ltd and Outdoor Holding Co. On the policy front, attention remains on upcoming central-bank communications and the path of Treasury yields, alongside the market’s evolving view of rate decisions at upcoming FOMC and ECB meetings.
