US stock indexes traded mixed on Monday as investors weighed softer consumer sentiment data against support from select corporate earnings and lower oil prices. The Dow Jones Industrial Average rose to a 1.5-week high, while the Nasdaq 100 fell to a 2.75-month low, reflecting renewed pressure in chipmakers and AI-infrastructure stocks.
In rates markets, the yield on the US 10-year Treasury edged down, helped by a drop in crude oil prices that eased near-term inflation concerns. The week ahead is set up for renewed focus on megacap technology results, alongside the start of a two-day Federal Open Market Committee meeting.
Key takeaways
- Price move: The S&P 500 gained modestly, the Dow climbed, and the Nasdaq 100 declined, with September E-mini Nasdaq futures falling more sharply than S&P futures.
- Catalyst: Better-than-expected earnings from Coca-Cola and Sherwin-Williams helped support equities, while chip and AI-infrastructure selloffs weighed on the Nasdaq 100.
- Rates and inflation: Crude oil prices fell after reports of an extended pause in US–Iran hostilities, pulling Treasury yields lower.
- Macro mix: A decline in the Conference Board’s US consumer confidence index contrasted with a rise in home prices, keeping investor sentiment divided.
- Implication: Markets are likely to stay sensitive to guidance and spending commentary from large technology and AI-related companies as investors price the near-term policy path.
What drove the move
Corporate earnings provided a partial lift for broader market sentiment. According to market coverage, Coca-Cola and Sherwin-Williams posted results that beat expectations and also raised or improved full-year outlooks, helping lift their respective index exposures.
At the same time, the Nasdaq 100 came under pressure as the market extended a selloff in chipmakers and AI-infrastructure names. Reporting linked the weakness to fresh concerns about artificial intelligence spending and intensifying competition from China, with semiconductor exchange-traded products falling to multi-month lows.
Macro data also contributed to a mixed tape. The Conference Board’s US July consumer confidence index unexpectedly fell, while a separate measure of home price growth showed an acceleration. In addition, a US Richmond Fed manufacturing survey rose, though it came in below expectations.
Energy and inflation dynamics supported the rate-sensitive parts of the market. Lower crude oil prices were cited as easing inflation concerns, pushing bond yields lower and providing incremental support to equities.
Market reaction across rates, oil, and foreign equities
Bond markets leaned lower on yields. Data in the article showed the 10-year Treasury yield down by several basis points to about 4.61%, alongside a decline in the 10-year breakeven inflation rate to a one-month low.
Oil prices fell as the article reported the US and Iran extended a pause in hostilities. Attention is shifting to talks between Iran and Oman regarding reopening the Strait of Hormuz. Even so, geopolitical risk remained elevated, with the article noting ongoing US restrictions on Iranian oil shipments in the Persian Gulf and additional reported strikes by Houthi militants affecting facilities connected to Saudi Aramco in ports along the Red Sea.
Overseas markets were mostly lower. The article cited declines in Europe and Asia, including a sharp drop in Japan’s Nikkei 225 to a two-month low and a broad retreat in China’s Shanghai Composite.
Sector and stock-level highlights
Semiconductors and AI infrastructure were among the day’s largest drags on the Nasdaq 100. The article pointed to broad losses across chip-related names, with several companies and storage and equipment suppliers declining by double-digit and high-single-digit percentages.
In contrast, software stocks were mostly higher, which helped cushion the broader market despite weakness in chips. The article highlighted strength in shares of Workday, Thomson Reuters, and Autodesk, alongside gains in other enterprise software names and select tech-related firms.
Cryptocurrency-exposed equities also fell. According to the coverage, declines tracked weakness in Bitcoin, with several digital-asset linked stocks moving lower.
Individual earnings and outlook updates drove large single-stock moves. The article noted sharp declines for Amkor Technology and Corning after forecasts came in below consensus expectations. It also cited a downgrade for RXO after TD Cowen reduced its rating, and upside momentum for IQVIA after raising its full-year revenue guidance.
Among notable gainers, Sherwin-Williams rose after reporting adjusted earnings per share above consensus and lifting its full-year outlook, while Coca-Cola climbed following an increase to its full-year comparable EPS forecast. Nucor was also higher after reporting quarterly sales ahead of expectations.
What investors are watching next
With megacap technology results scheduled to arrive during the week, investors are likely to focus on AI-related spending commentary and margin outlooks, especially given the market’s heightened sensitivity to the AI capex cycle. The article also said compiled estimates expect strong earnings growth for the S&P 500 in the current quarter, with AI infrastructure projected to contribute a large share of expected earnings-per-share growth.
In policy terms, markets are pricing an additional decision at the upcoming FOMC meeting. The article also pointed to substantial calendar risk, including ongoing earnings releases across a broad set of companies.
Next catalysts include continued company results from large technology firms such as Amazon, Meta Platforms, and Microsoft, as well as further read-through from consumer sentiment data and follow-through on oil and Middle East risk premiums.
