US sharemarkets finished mixed on Monday as weakness in major technology stocks offset gains in industrials and select semiconductor names, while investors monitored developments in US-Iran negotiations and looked ahead to key inflation data later this week. The S&P 500 fell 0.37% to 7,472.79, while the Nasdaq Composite lost 1.32% to 26,166.60. The Dow Jones Industrial Average rose 148.01 points, or 0.29%, to 51,712.71, supported by a strong gain in Caterpillar.
Large technology stocks weighed on the broader market. Alphabet dropped 5% following concerns over artificial intelligence talent departures, while Amazon fell 4.8%, Meta Platforms lost 2.3% and Microsoft declined 3%. SpaceX also remained under pressure, falling 16% for its third consecutive daily loss.
Semiconductor stocks, however, outperformed. Micron Technology rose almost 7% ahead of its quarterly earnings release, while Advanced Micro Devices gained more than 2% and Intel climbed 5%.
Oil prices fell after signs of progress in negotiations between the US and Iran raised hopes for a longer-term resolution to the conflict. Brent crude dropped 3.31% to settle at US$77.90 a barrel, while West Texas Intermediate crude fell 2.32% to US$74.82. The move followed reports that US and Iranian officials had agreed on a roadmap towards a final agreement within 60 days. Sentiment was further supported after the US Treasury authorised Iranian oil sales for the next 60 days. Investor attention now turns to Thursday’s release of the US personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation measure. Following last week’s hawkish Fed meeting, markets have brought forward expectations for a possible interest rate increase to as early as October.
Australian Market Outlook
Australian shares are expected to edge higher after a volatile session on Wall Street, supported by a strong rally in Micron Technology following its better-than-expected quarterly results. S&P/ASX 200 futures are up 9 points, or 0.1%, to 8,755.
Local technology stocks may find support after Micron surged 15.7% in post-results trading, lifting the broader semiconductor sector. However, broader market sentiment is likely to remain cautious after Apple fell 6.2% overnight following significant price increases across its product range, citing higher memory chip and storage costs.
Oil prices also rebounded more than 2% after a cargo ship was reportedly struck while transiting the Strait of Hormuz, highlighting that geopolitical risks in the Middle East remain a key focus for investors.
