Nasdaq Rise‌‌s 0.08% to 26,538.45, S&P 500 and Dow Gain on Iran Pe‌‌ace Talks Pr‌‌ogres‌s; Oil Prices Slide Over 3%

Mumba‌‌i, June 22: Wall Street started the week on cautiously optimistic notes, as investors weighed encouraging developments in US-Iran peace talks and with the S&P 500 and the Dow Jones Industrial Average posting gains, while the tech-heavy Nasdaq Composite traded near the flatline. The positive sentiment came as crude oil prices eased after diplomatic breakthroughs although technology stocks continued trading lower on valuation concerns ahead of key inflation data later this week. 

Nasdaq Compos‌‌ite Gai‌‌ns 20.52 Points as Tech Stocks Show Mixed Performance 

Nasdaq Composite (^IXIC) increased by 0.08% or 20.52 points to trade at 26,538.45 during the morning session, recovering from an earlier fall. The index opened at 26,483.31, which was lower than its previous close of 26,517.93, reaching a high of 26,561.12 against a low of 26,438.21 during the session. The index remains within its 52-week range of 19,334.98 to 27,190.21, with trading volume rea‌‌ching 4.36 billion shares 

According to the Nasdaq 100 heatmap, there was divergence in the performance of major tech stocks. NVIDIA (NVDA) gained 1.16%, Apple (AAPL) went up by 1.28%, and Intel (INTC) surged 3.26%. However, Alphabet (GOOGL) declined by 4.30%, while Amazon (AMZN) shed 2.37%, weighing on the performance of the index. Tesla (TSLA) outperformed with a gain of 3.06%, while Bro‌adcom (AVGO) declined 2.88%. 

S&P 500 Climbs 0.33% to 7,525.21 Amid Broad-Based Gains 

The S&P 500 (^GSPC) advanced 0.33% or 24.63 points to 7,525.21, building on last week’s momentum. The benchmark index opened at 7,500.44 and touched an intraday high of 7,529.57, staying well within its 52-week range of 5,943.23 to 7,620.90. Trading volume stood at 484.42 million shares, significantly below the average volume of 5.46 billion. 

Sectoral performance showed strength across industrials and financial services, with technology stocks exhibiting mixed results. The S&P 500 heatmap indicated that Super Micro Computer (SMCI) led the gainers with a spectacular 13.74% rally, followed by ON Semiconductor (ON) which soared 8.37%. Coinbase Global (COIN) jumped 5.93%, while Skyworks Solutions (SWKS) and Sandisk (SNDK) advanced 5.83% and 5.78% respectively. 

The losers’ list was topped by Moderna (MRNA) which plummeted 7.44%, followed by Albemarle (ALB) down 4.75% and Domino’s Pizza (DPZ) declining 4.53%. Both classes of Alphabet shares featured among the top five losers, with GOOGL and GOOG shedding approximately 4.3% each. 

Also Read: How to Invest in the US Stocks From India?

Dow Jones Industrial Average Surges 255.38 Points as Caterpillar and Amgen Lead 

The Dow Jones Industrial Average (^DJI) outperformed its peers, climbing 0.50% or 255.38 points to reach 51,820.08. The index opened at 51,555.19 and touched a high of 51,886.00, maintaining its position within the 52-week range of 41,981.14 to 52,281.19. Volume stood at 74.99 million shares. 

Caterpillar (CAT) emerged as the top performer in the Dow, surging 2.68% to 1,012.20, followed by Travelers Companies (TRV) which gained 1.64%. Nvidia (NVDA) advanced 1.53%, while Amgen (AMGN) rose 1.44% and Apple (AAPL) added 1.38%. 

On the downside, Amazon (AMZN) led the losers with a 2.43% decline, followed by Nike (NKE) which fell 2.35% to 44.14. McDonald’s (MCD) dropped 1.79% to 273.63, while Home Depot (HD) and Procter & Gamble (PG) declined 1.21% and 0.74% respectively. 

US-Iran Peace Talks Trigger Oil Price Collapse and Ease Supply Concerns 

The primary catalyst behind Monday’s market movements was the encouraging progress in US-Iran peace negotiations. Mediators Qatar and Pakistan announced on Monday that US and Iranian officials had agreed on a roadmap to reach a final deal within 60 days, with both sides establishing a communication line to avoid incidents in the Strait of Hormuz. 

Iran reported “major progress” following overnight peace talks with the US in the Swiss resort of Bürgenstock, building on last week’s interim agreement which extended the ceasefire and reopened the Strait of Hormuz. The proposed framework includes the formation of a committee and a mechanism to help end hostilities in Lebanon. Mediators confirmed the creation of a “de-confliction cell” involving concerned parties and Lebanon to ensure compliance with the cessation of military operations. 

Additionally, the US Treasury Department authorised the sale of Iranian oil for 60 days through a temporary general license, significantly easing supply constraints that had previously driven oil prices higher. Vice President JD Vance also confirmed on Monday that Tehran had agreed to allow inspectors from the International Atomic Energy Agency (IAEA) to return to the country. 

Crude Oil Prices Retreat Over 3% to Near $77 Per Barrel 

Brent crude futures for August fell more than 3% to around $77 per barrel, marking their first decline in three sessions. West Texas Intermediate (WTI) crude futures for July declined over 2% to approximately $74 per barrel, as progress in diplomatic talks and efforts to ensure safe passage through the Strait of Hormuz eased concerns over potential supply disruptions and inflationary pressures. 

The decline in oil prices has alleviated inflationary concerns, providing support to equity markets. Last week, both Brent and WTI crude extended their losses for a second consecutive week, retreating to levels seen before the recent conflict and trading about 35% below their recent peaks. The easing of geopolitical tensions is expected to have a positive impact on consumer spending and corporate margins. 

Alan Greenspan, Former Federal Reserve Chairman, Passes Away at 100 

Alan Greenspan, the legendary economist who steered the Federal Reserve for nearly two decades from 1987 to 2006, passed away on Monday at the age of 100. Known as “the maestro” for navigating the US economy through numerous peaks and troughs, Greenspan presided over the economic boom of the 1990s, the bursting of the dot-com bubble in 2000, the 1998 bailout of Long Term Capital Management, and the terror attacks of September 11, 2001. 

Last week, newly installed Fed Chairman Kevin Warsh underscored Greenspan’s influence on him at his swearing-in ceremony. “Chairman Greenspan was the first to tell me and show me what this role demands,” Warsh said. “Like Alan, I intend to fill the role of chairman with energy and purpose, just the way Chairman Greenspan did.” Greenspan’s death comes at a critical time as markets await key economic data that could influence future monetary policy decisions. 

Also Read: Understanding US Stock Market Timings

Investors Await PCE Inflation Data and Micron Earnings as Key Catalysts 

Market participants are now shifting focus to critical economic indicators scheduled for later this week. The May reading of the Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge, is due on Thursday. Economists expect inflation to accelerate modestly in May, according to FactSet poll, a result that could reinforce expectations that interest rates may remain elevated for longer. 

Following last week’s hawkish Fed meeting, expectations of an interest rate increase have been pulled forward to as soon as October. Any inflation reading suggesting persistent price pressures could accelerate these expectations and impact market sentiment. Additionally, Micron Technology’s quarterly report, due Wednesday after the bell, is expected to provide insights into semiconductor demand and the broader technology sector’s health. 

Analysts continue to caution that US stocks are trading at elevated valuations relative to government bond yields, with some strategists suggesting this narrow valuation premium could become a headwind if Treasury yields remain high. However, despite these concerns, market participants remain cautiously optimistic about the near-term outlook. 

Easing geopolitical tensions following progress in US-Iran peace efforts have lowered oil prices, reducing input cost pressures for industries. Investors should watch Thursday’s PCE inflation data for clues on future Federal Reserve rate decisions. Persistent inflation may revive rate hike expectations. Semiconductor stocks continue to outperform amid AI-driven demand, while broader technology performance remains mixed. 

Source 

• https://www.nasdaq.com/ 

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

• https://www.dowjones.com/