Wall Street Ends Mixed: Dow Gains 0.51% to 52,210, Nasdaq Slips 0.18% as Chip Rout Deepens

Mumbai, July 28: US equities finished Monday’s session on a mixed footing as a steep decline in semiconductor stocks offset the positive impact of sharply lower crude oil prices. While easing geopolitical tensions lifted optimism across several sectors, persistent selling in chipmakers weighed heavily on technology shares, leaving the broader market without a clear direction. 

The Dow Jones Industrial Average climbed 262.83 points, or 0.51%, to 52,210.08, supported by gains in consumer-focused companies, software firms and industrial names. The S&P 500 ended almost unchanged, edging up 1.20 points, or 0.02%, to 7,413.18, while the Nasdaq Composite slipped 43.74 points, or 0.18%, to 24,932.08 as semiconductor stocks extended last week’s losses. 

Investor sentiment was shaped by two contrasting developments. On one hand, the sharp fall in oil prices eased concerns over inflation and supported rate-sensitive sectors. On the other, renewed weakness in artificial intelligence-linked chipmakers raised questions about whether the technology rally can sustain its momentum ahead of a busy earnings week and the upcoming Federal Reserve policy decision. 

Nasdaq Composite Sinks 0.18% as Chipmakers Extend Brutal Sell-Off 

Technology stocks came under renewed pressure, dragging the Nasdaq Composite lower despite a strong opening. The index began the day at 25,236.19 and briefly traded higher before aggressive selling in semiconductor companies erased early gains. It later fell to an intraday low of 24,774.87 before recovering modestly to close at 24,932.08. Trading activity remained relatively subdued, with 6.65 billion shares changing hands compared with the three-month average of 9.63 billion. 

The biggest drag came from semiconductor stocks as investors continued to reduce exposure to AI hardware companies. The PHLX Semiconductor Sector Index (SOX) dropped 264.01 points, or 2.23%, to 11,554.88, extending its recent decline and leaving the benchmark more than 22% below its June record high, confirming bear-market territory. 

Several major chipmakers posted sharp losses. ASML declined 5.80%, Advanced Micro Devices (AMD) fell 5.11%, while Lam Research lost 4.50%. The weakness reflected growing caution around elevated valuations and expectations that demand growth for AI infrastructure could moderate after an extended rally. 

Dow Jones Rallies 0.51% as Falling Oil and Treasury Yields Boost Cyclicals 

Unlike the Nasdaq, the Dow Jones Industrial Average maintained steady gains throughout the trading session as investors shifted toward sectors expected to benefit from lower energy costs and declining bond yields. 

The index opened at 52,173.42, climbed to an intraday high of 52,607.78, and settled at 52,210.08. Around 487 million shares were traded during the session. The Dow’s 52-week trading range now stands between 43,340.68 and 53,289.30, highlighting its strong recovery over the past year. 

Among the best-performing Dow components, Salesforce surged 6.07% after attracting strong buying interest in software stocks. 3M gained 3.25%, while Sherwin-Williams advanced 3.07%. Apple also contributed positively with a 1.20% rise. 

Energy stocks, however, moved in the opposite direction as crude prices plunged. Chevron declined 2.46%, making it one of the weakest performers on the index. Caterpillar lost 1.74%, while Goldman Sachs slipped 1.22% as financial shares remained largely subdued. 

Oil Prices Tumble 8.7% as US and Iran Pause Military Strikes 

Oil prices recorded one of their biggest single-day declines in months after signs of easing tensions between the United States and Iran reduced fears of supply disruptions in the Middle East. 

Brent crude dropped 8.7% to settle at $88.36 per barrel, while West Texas Intermediate (WTI) crude fell 7.5% to $82.61 per barrel. The decline followed reports that Washington had paused military operations against Iran to allow diplomatic discussions to continue. 

The move reassured markets that crude supplies from the region were less likely to face immediate disruption. Investors also took comfort from expectations that shipping through the Strait of Hormuz, one of the world’s most important energy trade routes, would remain unaffected. 

The sell-off reversed much of last week’s sharp rally, when fears of escalating conflict briefly pushed Brent crude above $100 a barrel. Lower oil prices also strengthened expectations that energy-driven inflationary pressures could ease in the coming months. 

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

S&P 500 Ekes Out 0.02% Gain as Defensive Sectors Outperform 

The S&P 500 ended virtually unchanged, reflecting the market’s struggle to balance strength in defensive sectors against continued weakness in technology and energy stocks. 

The benchmark index rose 1.20 points, or 0.02%, to 7,413.18 after trading within a wide intraday range between 7,382.74 and 7,480.57. Total trading volume reached 3.09 billion shares, below the three-month average of 5.57 billion. The index currently trades within a 52-week range of 6,212.69 to 7,620.90. 

Sector performance remained sharply divided throughout the day. Consumer staples led gains, rising 1.58%, as lower oil prices reduced transportation and production costs for manufacturers of food, beverages and household products. Falling Treasury yields further boosted demand for defensive sectors, while communication services also outperformed. 

By contrast, the energy sector recorded the steepest decline, falling 2.01% after crude prices slumped. Technology stocks also remained under pressure because of the semiconductor sell-off, while utilities finished modestly lower. 

Among individual stocks, Autodesk topped the S&P 500 gainers with a 7.70% rally, followed by Lamb Weston Holdings, which advanced 7.12%, and Expedia, which gained 7.09%. On the downside, CH Robinson Worldwide fell 6.46%, while AMD dropped another 5.18%, reflecting continued selling across the semiconductor industry. 

Nasdaq 100 Falls 0.32% to 28,039 as Software Stocks Buck the Trend 

The Nasdaq 100 extended its decline on Monday, falling 89.13 points, or 0.32%, to close at 28,039.21, as continued weakness in semiconductor companies outweighed strong gains in software and internet stocks. The index opened at 28,412.31, touched an intraday high of 28,460.20, and slipped to 27,786.54 before recovering part of its losses by the closing bell. Its 52-week range now stands between 22,673.88 and 30,762.20. 

Despite the overall decline, the session highlighted a clear shift in investor positioning. Market participants rotated away from AI hardware and semiconductor stocks while increasing exposure to software companies and digital platforms that had lagged earlier in the year. Investors also adjusted portfolios ahead of a packed earnings calendar featuring several technology heavyweights. 

Shopify led the Nasdaq 100 gainers with a 11.54% jump, followed by Workday, which climbed 9.39%, and Thomson Reuters, which advanced 7.72%. Palantir Technologies rose 7.00%, Adobe gained 5.62%, and Booking Holdings added 5.26%. Their strong performance partly cushioned the impact of sharp declines across semiconductor stocks but was not enough to prevent the index from finishing in negative territory. 

Russell 2000 Gains 0.62% as Small-Caps Outperform on Earnings Optimism 

Small-cap stocks outperformed the broader market, with the Russell 2000 Index rising 18.04 points, or 0.62%, to close at 2,948.04. The benchmark opened at 2,944.61 and traded between 2,931.44 and 2,972.46 during the session. Its 52-week range currently stretches from 2,143.43 to 3,046.59. 

The strength in smaller companies reflected growing confidence that corporate earnings growth is broadening beyond the largest technology firms. Analysts expect improving profit trends across industrials, financials and consumer businesses to support small-cap performance over the coming quarters. 

Consensus forecasts for Russell 2000 companies now point to 38% earnings growth in 2026, up from roughly 23% projected at the start of the year. Investors continued to favour companies with improving earnings outlooks despite uncertainty surrounding interest rates. 

Among the strongest performers, Navan gained 11.12%, while Rigetti Computing surged 10.53%. Although the semiconductor sector came under heavy selling pressure, several niche technology companies within the small-cap universe managed to outperform. 

Even so, analysts cautioned that small-cap shares remain highly sensitive to changes in borrowing costs. Any indication of tighter monetary policy from the Federal Reserve could increase funding costs for smaller businesses and limit further upside. 

Also Read: How to Invest in S&P 500 Stocks Through Index Funds

NYSE Composite Advances 0.45% to 24,098.82 

The NYSE Composite Index gained 107.93 points, or 0.45%, to finish at 24,098.82, outperforming several major benchmarks as buying interest remained broad-based outside the technology sector. 

The index opened at 23,990.88 before climbing steadily through the session to reach an intraday high of 24,193.50, marking a fresh 52-week high. The benchmark has now recovered nearly 20% from its yearly low of 20,131.76, reflecting improving market breadth across sectors. 

Financials, industrials, consumer companies and defensive stocks provided most of the support, offsetting weakness in energy and semiconductor names. The broader composition of the NYSE Composite helped cushion the impact of declines in a handful of large technology stocks that weighed heavily on the Nasdaq. 

PHLX Semiconductor Index Plunges 2.23% as Chip Rout Deepens 

Semiconductor stocks remained at the centre of Monday’s market weakness as the PHLX Semiconductor Sector Index (SOX) fell 264.01 points, or 2.23%, to 11,554.88. 

The index traded between 11,217.35 and 11,949.46 during the session and is now more than 22% below its record closing high of 14,655.29 reached on 22 June, officially placing it in bear-market territory. 

Selling pressure was widespread across the semiconductor industry. Nvidia declined 4.94%, AMD lost 5.11%, while Intel slipped 0.70%. Memory-chip manufacturers suffered even steeper losses, with SanDisk plunging 11.02% and SK Hynix falling 7.47%. 

Semiconductor equipment manufacturers also faced heavy selling. ASML dropped 5.80%, Applied Materials fell 3.61%, and Lam Research declined 4.50%. 

The continued weakness reflects investor concerns over lofty valuations and the possibility that spending on AI infrastructure may normalise after an exceptionally strong investment cycle over the past year. 

Treasury Yields Decline as Oil Plunge Eases Inflation Fears 

US Treasury yields moved lower as falling oil prices reduced concerns about inflation and strengthened expectations that the Federal Reserve may avoid taking a more aggressive stance on interest rates. 

The benchmark 10-year Treasury yield declined 3.2 basis points to 4.647%, after touching an intraday low of 4.626%. Meanwhile, the CBOE 10-year Treasury yield index (^TNX) eased 0.81% to 4.641%. 

Lower energy prices are generally viewed as positive for inflation because they reduce transportation, manufacturing and operating costs across the economy. Investors therefore increased demand for government bonds, pushing prices higher and yields lower. 

The 30-year Treasury yield (^TYX) also declined 0.72% to 5.13%, while the CBOE Volatility Index (VIX) edged up 0.48% to 18.67. 

Although the VIX rose modestly during the session and briefly touched 19.93, it remained well below the elevated levels seen earlier this year. Traders continued to position cautiously ahead of the Federal Reserve’s policy announcement and a series of major corporate earnings reports expected later this week. 

KBW Nasdaq Bank Index Slips 0.03% While Dow Transports Fall 1.82% 

The KBW Nasdaq Bank Index (BKX) finished little changed, slipping 0.03% to 188.22, as investors largely stayed on the sidelines ahead of the Federal Reserve meeting. 

Bank stocks have traded within a narrow range in recent sessions as markets weigh the potential impact of future interest-rate decisions on lending margins and credit growth. While lower Treasury yields could ease borrowing costs, they may also reduce profitability for lenders if interest margins come under pressure. 

Meanwhile, the Dow Jones Transportation Average fell 1.82% to 22,066.31, underperforming the broader market despite the sharp drop in fuel prices. 

Normally, lower crude prices provide a tailwind for airlines, trucking companies and logistics firms by reducing operating expenses. However, Monday’s decline suggested investors remained more focused on slowing economic activity, tariff-related concerns and uncertainty surrounding consumer demand than on lower energy costs. 

Also Read : US Stock Market Timings

NYSE Arca Biotechnology Index Declines 0.29% to 8,591.27 

Healthcare shares delivered a mixed performance, with the NYSE Arca Biotechnology Index (BTK) slipping 0.29% to close at 8,591.27. 

Biotechnology stocks remained volatile as investors assessed sector-specific developments, including ongoing discussions around drug pricing and healthcare regulation. The industry has also experienced increased stock-specific volatility as companies report clinical trial updates and earnings. 

Among the weakest performers, Legend Biotech tumbled 13.28% to $19.27, making it one of the biggest decliners across US markets and weighing on the broader biotechnology benchmark. 

Despite the modest decline in the BTK index, investors continued to favour established healthcare companies with stable earnings while remaining selective in higher-risk biotechnology names. 

Fed Decision, Dollar and Oil in Focus Ahead of Key Market Week 

Investor attention has shifted to the Federal Reserve’s policy meeting, with markets closely watching whether the central bank holds rates steady or opts for a 25-basis-point hike. Futures indicate a 62% probability of no change, while rate-hike expectations have risen to 37%.  

Meanwhile, easing US-Iran tensions triggered a sharp drop in oil prices, softening inflation concerns and weighing on the US dollar. The euro strengthened modestly, while the dollar weakened against the yen. Lower Treasury yields, falling natural gas prices and upcoming earnings from major technology companies are expected to keep global markets volatile in the days ahead. 

Markets closed mixed as falling oil prices supported broader sentiment, but persistent semiconductor weakness limited gains. Investors now await the Federal Reserve’s policy decision and major corporate earnings, with both expected to shape near-term market direction and influence sector performance across Wall Street. 

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