The S&P 500 closed lower on Monday as a sharp selloff in semiconductor and AI-linked names outweighed gains in retail and payments stocks. The Dow Jones Industrial Average still finished higher, while the Nasdaq 100 posted the steepest drop among the major indices.
The S&P 500 fell 21.40 points, or 0.28%, to close at 7,652.96 on Monday. The Dow Jones Industrial Average, by contrast, rose 140.03 points, or 0.26%, to 53,422.35. The split reflected a rotation away from technology rather than broad selling across the market.
Chip and AI names lead the pullback
Semiconductor, memory and AI-infrastructure stocks took the brunt of the selling. The Nasdaq 100 dropped 285.68 points, or 0.97%, to 29,023.18, the weakest showing among the major indices. The Nasdaq Composite fell 200.26 points, or 0.76%, to 25,980.19.
Losses hit chipmakers, networking companies, optical suppliers and data-center names alike. SanDisk dropped 6.45%. Micron declined 5.83%, and Nvidia slipped 2.91% ahead of its earnings report. Broadcom, Marvell Technology, Advanced Micro Devices and Taiwan Semiconductor also traded lower, suggesting investors were taking profits across the broader AI infrastructure trade.
Retailers and payments stocks lead gainers
Away from technology, retail, payments, transportation and defensive shares provided leadership. Dollar Tree climbed 4.01%. Mastercard gained 3.30%, and Visa added 3.07%, helping lift the Dow even as technology names weighed on the broader market.
Walmart, Target, Costco, FedEx and Walt Disney also posted gains, alongside consumer names Celsius Holdings, Chipotle and DoorDash. The pattern had the characteristics of a rotation, with money moving out of chip and AI stocks and into retailers, payment processors and transportation shares.
Volatility rises ahead of Nvidia earnings
Market volatility picked up alongside the sector rotation. The CBOE Volatility Index rose 4.69% to 15.84. Declining stocks also outnumbered advancing ones on the NYSE by 1,408 to 1,303.
Nvidia is due to report earnings on Wednesday after the close. The stock has fallen for seven consecutive days, moving from a high of $227.76 to a low of $207.25, a decline that brought it close to its 100-day moving average at $206.99. A move below that level would put traders' focus on the 200-day moving average at $199.34.
Sources: Investinglive, Investing.com
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