US stocks-S&P and Nasdaq dip as investors focus on tech earnings

On Monday, crude fell to a one-week low as U.S. President Donald Trump said Washington was having "good talks" with Iran and there was a chance of a peace deal, but warned U.S. strikes would resume if the negotiations failed to deliver. Oil prices surged last week, with Brent futures surpassing $100 a barrel, after new strikes on shipping in the Middle East. Nvidia NVDA.O fell 4.9% and smaller rival Advanced Micro Devices AMD.O lost 7.3%, with losses in those and other chipmakers weighing heavily on the S&P 500 and Nasdaq. The PHLX chip index .SO dropped 3.5% and was down about 22% from its record high close on June 22. The chip index remains up 61% in 2026. Chinese chipmaker CXMT Corp's 688825.SS stellar debut on Monday and a report that the country has started manufacturing homegrown DUV chipmaking tools also signaled intensifying competition for the U.S. semiconductor industry. Oil companies Occidental Petroleum OXY.N and Exxon Mobil XOM.N dropped 3.2% and 1.4%, respectively. The Fed's monetary policy decision is due on Wednesday and traders are projecting a 62% chance the central bank will leave rates unchanged, with a 38% chance of a 25 basis-point hike, according to the CME FedWatch tool. The Personal Consumption Expenditures Price Index for June is due a day after the central bank's decision and will be key in shaping market expectations for interest rates later this year. Analysts on average expect S&P 500 aggregate second-quarter earnings to jump 39% from a year ago, with AI-related stocks accounting for much of that growth, according to LSEG I/B/E/S. The S&P 500 is trading at around 20 times expected earnings, compared to a 10-year average of 20, according to LSEG data. Other parts of the U.S. stock market climbed, with the S&P 500 consumer staples index .SPLRCS adding 1.7% and the health care index .SPXHC up about 1%. "Today represents a continuation of the rotational market that we've seen," said Bill Merz, head of capital markets research and portfolio construction at U.S. Bank Asset Management Group. "Part of the market reaction may be related to that creeping suspicion that perhaps a rate hike is coming." The S&P 500 was down 0.24% at 7,394.28 points. The Nasdaq declined 0.56% to 24,835.82 points, while the Dow Jones Industrial Average was up 0.25% at 52,078.55 points. Even as the S&P 500 fell, advancing issues outnumbered falling ones within the index .AD.SPX by a 1.6-to-one ratio. The S&P 500 posted 28 new highs and three new lows; the Nasdaq recorded 88 new highs and 150 new lows. Wall Street dipped on Monday, as investors worried that stubbornly high oil prices could force the Federal Reserve to raise interest rates, as they also awaited guidance from major technology companies in a busy week for quarterly earnings. Microsoft MSFT.O, Amazon AMZN.O, Meta META.O and Apple AAPL.O are set to report quarterly results this week. Investors were questioning whether a multi-year rally fueled by optimism about artificial intelligence may be losing steam. Investors last week were spooked by quarterly results from Tesla TSLA.O and Alphabet GOOGL.O that showed heavy spending on artificial intelligence.

US stocks-S&P and Nasdaq dip as investors focus on tech earnings

Oil prices ease, but energy and chip stocks fall

Fed meeting and earnings outlook remain key drivers

Rotation into defensive sectors supports the broader market

Wall Street dips as investors await tech earnings and Fed decision

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