On Monday, the S&P 500 Index closed up 0.02% while the Dow Jones Industrial Average increased by 0.51%. In contrast, the Nasdaq 100 fell by 0.32%, marking its lowest closing in 2.5 months, driven by weakness in semiconductor and AI infrastructure stocks. Investors shifted their focus to software sectors, with E-mini S&P futures rising 0.02% and E-mini Nasdaq futures declining 0.33%.
The decline in crude oil prices of over 7% was a significant factor, attributed to easing geopolitical tensions between the US and Iran. The 10-year Treasury note yield fell 4 basis points to 4.64% due to reduced inflation expectations. Additionally, U.S. capital goods new orders rose 0.9% month-over-month in June, surpassing expectations of 0.7%, indicating economic strength.
Market sentiment remains cautious with an anticipated 38% chance of a 25 basis points interest rate hike at the next Federal Open Market Committee meeting. As of Monday, 86% of the 135 S&P 500 companies that have reported Q2 earnings beat estimates, with expectations for overall earnings growth at 23% for the quarter.
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