The Dow Jones Industrial Average edged up 0.13% at midday on Monday while the Nasdaq Composite slipped 0.44%, with Nvidia trading lower on concerns about Chinese competition. A fall of almost 7% in WTI crude after a pause in US-Iran strikes lifted the Dow slightly, but renewed AI valuation concerns weighed on markets. Traders now turn to this week's Federal Reserve meeting and earnings from Microsoft, Meta Platforms, Apple, and Amazon.
The Dow Jones Industrial Average rose 0.13% to 52,017.19 as of 11:38 AM ET on Monday. Meanwhile, the Nasdaq Composite slipped 0.44% to 24,840.43. The S&P 500 fell 0.33% to 7,387.76 as tech pressure offset optimism from cooling geopolitical tensions.
Elsewhere, gold added 0.45% to $4,074.30 and the 10-Year Treasury yield fell 0.03% to 4.65%. Communications and consumer defensive stocks led the morning's top-performing sectors, while technology and energy sat in the red.
Nvidia slips as RTX and SAP climb
RTX Corp climbed 2.61% to $218.28 on strong Q2 earnings. SAP surged 7.4% to $171.79, extending last week's gains after the software company beat earnings expectations.
Conversely, Nvidia traded lower amid concerns about Chinese competition. Reddit rose 6.7% on optimism about its upcoming earnings.
Oil pullback lifts the Dow
Oil prices fell this morning on news of a pause in strikes between the U.S. and Iran. WTI crude oil fell almost 7% to $83.15 a barrel, boosting market sentiment and lifting the Dow slightly.
However, investors are braced for further volatility and will be watching the Federal Reserve meeting this week.
Fed decision and big-tech earnings ahead
The Fed is widely expected to leave rates unchanged in July. But inflationary pressures caused by ongoing tensions in the Middle East and high spending by tech companies could prompt it to raise rates before the end of the year.
Renewed artificial intelligence (AI) valuation concerns also weighed on markets. Microsoft, Meta Platforms, Apple, and Amazon report earnings this week, and investors will be paying close attention to capital expenditure plans.
High concentration in the Nasdaq and the S&P 500 means any drop in their share prices will have an outsized impact on these major indexes.
Source: Motley Fool
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