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US stocks traded close to record levels on Monday as investors weighed lower oil prices against losses in major technology shares. The Dow Jones Industrial Average moved higher, while the S&P 500 shifted between small gains and losses. Moreover, the NASDAQ Composite fell as Alphabet, Amazon, Meta Platforms, and SpaceX declined.
Markets also tracked fresh US-Iran talks, rising Treasury yields, and inflation data due later this week. Investors showed caution after a three-day Wall Street weekend, even as falling crude prices reduced some concern over energy-led inflation.
Brent crude dropped more than 3% toward $77 a barrel after US and Iranian officials met in Switzerland. Mediators said both sides made ‘encouraging progress,’ although several disputes stayed unresolved. Washington and Tehran also agreed to work toward a final deal within 60 days.
The US Treasury issued a temporary 60-day license allowing the production, delivery, and sale of Iranian oil. Treasury Secretary Scott Bessent described the talks as ‘productive.’ Still, uncertainty surrounded the Strait of Hormuz after Iran said it had closed the route again, a claim disputed by US Central Command. Officials gave no firm date for reopening the route.
The Dow rose more than 200 points in early trading, supported by financial and health care shares. The S&P 500 gained as much as 0.3% before losing momentum. It entered the session within about 1.3% of its record high after posting gains in 11 of the previous 12 weeks.
Meanwhile, the NASDAQ Composite moved lower as communication services and large technology companies weakened. Alphabet fell about 6%, while Amazon and Meta Platforms also declined. Seven of the S&P 500’s 11 main sectors traded higher, with financial shares leading the gains.
SpaceX shares fell about 8%, putting the stock on course for a third straight daily loss. The decline pushed the price below $174 after a sharp run following its stock market debut. The company sold shares at $135 in its initial public offering.
The recent pullback came after SpaceX posted large gains in its first sessions as a public company. Its decline also weighed on the NASDAQ, where weakness in several high-value technology names offset gains among semiconductor companies.
Micron Technology gained more than 3% before its quarterly results, which are due Wednesday after the closing bell. Sandisk, Intel, NVIDIA, and Advanced Micro Devices also rose, while the Philadelphia Semiconductor Index reached another record.
AI-linked demand has supported chip shares this year, and Micron has gained nearly 300% since January. Investors will watch its revenue, margins, and demand outlook for memory products used in data centers and artificial intelligence systems.
Treasury yields moved higher despite the drop in oil prices. The 10-year Treasury yield climbed to about 4.49%, while the two-year yield reached its highest level since early 2025. Bond traders increased bets that the Federal Reserve could raise interest rates later this year.
Markets now place a high chance on at least one rate increase by year-end. Thursday’s personal consumption expenditures report will provide the next major test. Economists expect core inflation to rise from April, while another measure may show consumer inflation accelerated to 4.1% in May from 3.8% in April.
Investors will also follow comments from Federal Reserve officials, including New York Fed President John Williams and Chicago Fed President Austan Goolsbee. A hotter inflation reading could support expectations for a rate increase as early as September or October.
Elsewhere, AbbVie rose after agreeing to buy Apogee Therapeutics for about $10.9 billion in cash. Apogee shares surged nearly 47%. Overseas, the FTSE 100 gained, while Japan’s Nikkei 225 and South Korea’s Kospi reached record highs, helped by strength in technology and AI-linked shares.
As Wall Street remains close to record highs, investors are balancing optimism from lower oil prices with concerns over inflation, interest rates, and weakness in major technology stocks. Upcoming PCE inflation data and Federal Reserve signals will likely shape the market’s next move.
Also Read: Blue Cloud Softech Shares Jump 20% on AI Talks Buzz with SpaceX
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