Nasdaq Plunge‌‌s 1.32% to 26,166 as AI Tech Sel‌l-Of‌f Intensifies; Dow Gain‌‌s 0.29% on Ca‌‌terpil‌lar Rally

Mumbai, June 23: The US stock market ended with a mixed performance on Monday, with tech-heavy Nasdaq Composite Index bearing the brunt of a sharp sell-off in artificial intelligence and mega-cap stocks even as the industrial heavy Dow Jones Industrial Average index man‌‌aged to make gains on the back of ind‌‌u‌‌s‌‌trial strength.  

The Nasdaq Index declined 1.32% to end at 26,166.60, while the S&P 500 Index declined 0.37% to end at 7,472.79. On the other hand, the Dow Jones Industrial Average Index climbed 0.29% or 148.01 points to end at 51,712.71 as investors weighed progress in peace talks between the US and Iran amid rising Treasury yields and hawkish Federal Reserve expectations. 

The divergent performances across various indices indicated a clear rotation from high-growth technology names to cyclicals and defensive sectors as diplomatic developments in the Middle East eased geopolitical tensions, sending oil prices tumbling by more than 3%. 

US-Iran Peace Talks Drive Oil Prices Down 3.31% to $77.90; Treasury Autho‌rises 60-Day Iranian Oil Sales 

The major driver of Monday’s session was progress in U.S.-Iran talks in Bürgenstock, Switzerland. Mediators Qatar and Pakistan said that both sides agreed on a roadmap for a final deal within 60 days, which included setting up a communication hotline and establishing a “de-confliction cell” for the Strait of Hormuz.  

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Vice President JD Vance said that talks made “many good progresses” and established a strong foundation for the agreement. The US Treasury Secretary Scott Bessener announced a 60-day license allowing the sale of Iranian oil and petrochemicals until 21 August 2026. Brent fell by 3.31% to $77.90, while WTI declined by 2.32% to $74.82. 

Technology stocks led Monday’s decline, with the communication services sector in the S&P 500 dropping nearly 4%, marking its worst session since April 2025. Alphabet (GOOGL) tumbled 5.09% after two prominent AI researchers left the company.  

Nobel laureate John Jumper departed Google DeepMind for Anthropic, while Noam Shazeer, Google’s vice president of engineering, joined OpenAI, raising concerns about Alphabet’s ability to retain top AI talent amid intensifying competition.  

Amazon (AMZN) fell 4.66%, Microsoft (MSFT) lost 3.15%, Meta Platforms (META) declined 2.27%, and Netflix (NFLX) slid 5.72% to $72.89. Nvidia (NVDA) edged down 0.88%. The sell-off in mega-cap technology stocks pressured the Nasdaq as investors rotated into defensive and cyclical sectors amid interest-rate and geopolitical uncertainties. 

SpaceX Posts Third Consecutive Decline, Plunges 16.43% to $154.60 as Valuation Concerns Mount 

SpaceX (SPCX) dropped 16.43% to $154.60, marking its third straight daily decline and lowest close since its 12 June IPO debut. The stock is now down about 25% from its record high above $225 reached last Tuesday, although it remains more than 30% above its IPO price of $135.  

The decline followed confirmation of the company’s first senior unsecured bond offering, with proceeds earmarked to fully repay bridge loan borrowings. Bloomberg previously reported a potential $20 billion issuance.  

Despite volatility linked to its limited float and valuation, analysts highlight long-term opportunities in SpaceX’s launch business, Starlink, and AI infrastructure. Retail investors purchased a net $405 million of SpaceX shares during its first five trading sessions. 

Small-Cap Russell 2000 Surpasses 3,000 for First Time Ever, Up 21% Year-to-Date on Rotation Trade 

The small-cap-focused Russell 2000 gained about 1% to close at a record 3,003.239, surpassing the 3,000 mark for the first time and extending its year-to-date gain to more than 21%, outperforming both the S&P 500 and Nasdaq Composite.  

The rally suggests investors are broadening exposure beyond AI-driven winners toward smaller, domestically focused companies expected to benefit from easing geopolitical tensions and lower energy prices.  

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Meanwhile, the Dow Jones Industrial Average rose 148.01 points, or 0.29%, to 51,712.71, led by Caterpillar (CAT), which climbed 3.70% and contributed roughly 180 points to the index’s gain as industrial and financial stocks remained resilient. 

Micron Technology Jumps 6.82% on Anthropic Deal Ahead of Earnings; Memory Stocks Hit Record Highs 

Micron Technology (MU) jumped 6.82% to $1,211.38, reaching a record high after signing a multi-year agreement with AI firm Anthropic to co-design high-bandwidth memory products and participate in its Series H funding round.  

Micron will report fiscal third-quarter results on Wednesday, with analysts forecasting $36.15 billion in revenue, nearly four times last year’s level, and adjusted EPS of $20.95, up from $1.91.  

Memory-related stocks also advanced, with SanDisk (SNDK) and Seagate (STX) hitting record highs, while Intel (INTC) gained 5.21%, AMD rose 2.70%, Lam Research (LRCX) added 5.24%, and the Philadelphia Semiconductor Index climbed 1.76% to a fresh peak. 

Apogee Therapeutics Soars 46.66% on AbbVie’s $10.9 Billion Acquisition; Super Micro Computer Jumps 15.66% 

Apogee Therapeutics (APGE) soared 46.66% to $132.55 after AbbVie (ABBV) agreed to acquire the biotech firm for about $10.9 billion in cash, offering $135.11 per share, a 50% premium to Thursday’s close.  

AbbVie said Apogee’s atopic dermatitis and asthma drug candidates have “mega-blockbuster” sales potential, lifting ABBV shares 2.11%. Super Micro Computer (SMCI) jumped 15.66% to $35.46 after unveiling an Nvidia Vera Rubin NVL4-based data centre solution featuring up to 1,152 GPUs and 576 CPUs.  

Getty Images (GETY) surged over 90% after signing a multi-year licensing agreement with OpenAI for ChatGPT content integration, although financial terms were undisclosed. 

Treasury Yields Rise to Multi-Month Highs as Hawkish Fed Expectations Intensify Ahead of PCE Data 

U.S. Treasury yields climbed to multi-month highs on Monday as expectations for additional Federal Reserve tightening strengthened. The two-year Treasury yield reached 4.23%, its highest since early 2025, while the 10-year yield rose to 4.51% from 4.46% on Thursday.  

Futures markets now imply a 76–90% probability of a Fed rate hike by September 2026. Deutsche Bank revised its outlook to forecast two rate hikes totalling 50 basis points in 2026 after last week’s hawkish Fed meeting. Investors are awaiting Thursday’s PCE report, with economists expecting core PCE to rise 0.3% month-on-month and headline PCE to accelerate to 4.1% year-on-year from 3.8% in April. 

Gold Rises 0.5% to $4,205 as Safe-Haven Demand Persists; Bitcoin Climbs to $65,523 

Gold rose about 0.5% to $4,205 per troy ounce despite easing geopolitical tensions, supported by safe-haven demand amid uncertain macroeconomic conditions. Silver gained 2.4% to around $66.4 an ounce, aided by lower crude oil prices and reduced near-term inflation concerns.  

Bitcoin climbed 2.23% to $65,523, while Ethereum advanced about 3% on improved market sentiment. Strategy (formerly MicroStrategy) purchased 520 bitcoins worth roughly $35 million during the past week, increasing its holdings to 847,363 BTC. Meanwhile, the US dollar index rose 0.2% to 101, while the British pound remained volatile following Prime Minister Keir Starmer’s resignation. 

Defence Stocks Slide on Report Trump Summoning Contractors to White House; CVS Rallies on GLP-1 Initiative 

Defence stocks declined sharply after reports that President Trump summoned major contractors and Pentagon officials to the White House on Wednesday to discuss U.S. munitions shortages.  

Lockheed Martin fell 3.4%, L3Harris Technologies lost 3.2%, Northrop Grumman dropped 2.6%, General Dynamics eased 1.9%, and RTX Corp. declined 1.6%. The meeting is expected to be contentious, with Trump pressing manufacturers to accelerate production.  

Meanwhile, CVS Health (CVS) gained about 4%, reaching an intraday 52-week high after launching an integrated GLP-1 support programme for obesity drugs such as Wegovy and Zepbound. 

The gap between the Nasdaq and Dow underscores the importance of sector allocation amid changing macroeconomic conditions. Progress in U.S.–Iran talks has eased oil-driven inflation risks, supporting consumer and industrial stocks. However, rising Treasury yields and hawkish Fed expectations continue to pressure technology valuations. Investors are closely watching Thursday’s PCE inflation data for clues on future interest-rate moves. 

Source 

• https://www.nasdaq.com/ 

• spglobal.com/spdji/en/indices/equity/sp-500/ 

• https://www.dowjones.com/