US stocks traded mixed on Monday as investors returned from the Independence Day holiday with renewed demand for technology and chip shares. The S&P 500 and NASDAQ Composite moved higher, while the Dow Jones Industrial Average slipped after briefly crossing 53,000 for the first time.
The market focus stayed on semiconductor stocks, Federal Reserve meeting minutes, and the start of second-quarter earnings season. Broadcom, Apple, Microsoft, SpaceX, and SK Hynix remained among the key names watched by traders.
The NASDAQ Composite gained about 1.1%, while the S&P 500 rose 0.5% in morning trading. The Dow Jones Industrial Average fell 0.3% after briefly touching a fresh intraday record above 53,000. The move showed a split market, with technology leading while some blue-chip stocks lost ground.
Chip stocks recovered after two weak sessions last week. The Philadelphia SE Semiconductor Index jumped more than 4%, while the information technology sector led gains on the S&P 500. The rebound helped lift investor sentiment after recent pressure on AI-linked shares.
Broadcom rose 5.7% after extending its chip supply partnership with Apple through 2031. The deal covers custom chip development and supply, giving investors another reason to return to semiconductor names. Micron Technology, Marvell Technology, Teradyne, Western Digital, and Oracle also gained as AI and data center demand stayed in focus.
Meanwhile, SK Hynix prepared to launch a US listing aimed at raising about $28 billion. The offering added more attention to the global AI chip trade. The South Korean memory chipmaker has already drawn strong market interest this year, although its shares have also seen sharp swings.
Investors also looked ahead to minutes from the Federal Reserve’s latest policy meeting. The minutes are due Wednesday and will be closely watched after the first meeting led by new Fed Chair Kevin Warsh. Traders have reduced bets on a July rate hike after last week’s cooler jobs report.
According to CME FedWatch data cited in reports, traders now see a 24% chance of a 25-basis-point rate hike at the July 29 meeting. This is down from about 30% a week earlier. The shift came as investors judged whether softer labor data could give the Fed more room to wait.
The Institute for Supply Management said its services index slipped to 54.0 in June, close to market forecasts. The reading showed that US services activity kept growing, though at a slightly slower pace. Prices eased but stayed high, while employment moved back into growth.
Trade Nation’s senior market analyst, David Morrison, raised doubt about how much clarity the Fed minutes may offer. “Warsh wants the Fed to concentrate on the data and stick to that and not give any projections,” he said. “So it could be that the minutes don’t really give very much away.”
Second-quarter earnings will become a key test for Wall Street later this week. Delta Air Lines and PepsiCo are among the companies expected to report results. Investors are watching whether corporate updates can support the market after strong gains in the major indexes last week.
Morrison also pointed to uncertainty around the largest technology stocks. “This earnings season is important, given the fact that the Magnificent 7 have had a pretty tough time with things of late,” he said. He added that “just a little bit of good news” could help them resume their rally.
Microsoft stocks fell 1.8% after the company said it would cut about 4,800 jobs, equal to roughly 2.1% of its workforce. The stock’s decline weighed on sentiment around large-cap technology, even as broader tech shares rose.
SpaceX gained as investors prepared for its entry into the NASDAQ 100 on Tuesday. The move is expected to drive buying from funds that track the index. Elsewhere, O’Reilly Automotive dropped after reports said the company made a cash offer for Genuine Parts’ auto unit.
Global markets were more muted. European stocks slipped slightly, while Asian markets ended mixed. Japan’s Topix rose, South Korea’s Kospi fell, and Hong Kong’s Hang Seng gained. Oil prices drifted after OPEC+ members agreed to raise output again in August, while US Treasury yields edged lower.
With the second-quarter earnings season beginning and the Federal Reserve minutes due later this week, investors are expected to look for fresh signals on corporate profitability and the future path of US interest rates, which could shape the market's next move.
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