US stocks ended mixed on Monday as investors monitored rising oil prices, elevated Treasury yields, and escalating tensions in the Middle East, while technology stocks extended their recent pullback after a record-setting rally earlier this month.
The Dow Jones Industrial Average rose 159.95 points, or 0.32%, to close at 49,686.12.
Meanwhile, the S&P 500 slipped 0.07% to 7,403.05, while the Nasdaq Composite dropped 0.51% to end at 26,090.73.
The declines marked a second consecutive drop for the Nasdaq as investors reassessed valuations across high-growth technology and semiconductor stocks amid mounting inflation concerns and surging bond yields.
Tech and chip stocks lead market weakness
Technology shares remained under pressure Monday following last week’s sharp rise in global sovereign bond yields, which weighed heavily on growth-oriented sectors.
The information technology sector led declines among the S&P 500’s major industry groups, with semiconductor and memory-chip companies among the biggest drags on the broader market.
Shares of Seagate Technology fell nearly 7% after CEO Dave Mosley said during a JPMorgan conference that building new manufacturing facilities would “take too long,” fueling concerns that the memory-chip industry may struggle to meet surging demand tied to artificial intelligence infrastructure.
Micron Technology dropped almost 6%, while Western Digital and Sandisk each lost roughly 5%.
AI-related chipmakers Nvidia and Broadcom also declined around 1%.
The selloff came after a powerful rally in semiconductor stocks that had helped push the S&P 500 and Nasdaq to fresh record highs last week, while the Dow briefly reclaimed the 50,000 level.
Investors also continued reacting to Friday’s sharp bond-market move, when the Nasdaq-100 suffered its worst single-session decline since March 27 after Treasury yields climbed sharply worldwide.
The US 10-year Treasury yield reached its highest level since February 2025 earlier Monday, while long-dated bond yields in the United Kingdom and Japan also remained elevated.
Oil prices and Middle East tensions remain central focus
Energy markets remained volatile throughout Monday as investors closely monitored developments involving Iran and the United States.
West Texas Intermediate crude settled up roughly 3% at $108.66 per barrel, while Brent crude closed more than 2% higher at $112.10 per barrel.
Oil prices initially surged on fears of supply disruptions tied to the Strait of Hormuz before paring gains later in the session.
President Donald Trump said Monday that he was delaying a planned military strike on Iran that had reportedly been scheduled for Tuesday after discussions with leaders from Qatar, Saudi Arabia, and the United Arab Emirates.
Trump said “serious negotiations are now taking place” that could potentially produce a deal acceptable to the United States.
The comments helped ease some immediate fears surrounding oil supply disruptions, though investors remained cautious after Trump warned Sunday that Iran needed to “get moving” or there “won’t be anything left.”
Investors monitor inflation and earnings outlook
The combination of higher energy prices and rising Treasury yields has increased concerns that inflation could remain elevated for longer, reducing the likelihood of near-term Federal Reserve rate cuts.
According to CME FedWatch data, traders are now pricing in a growing probability of another Federal Reserve rate increase by year-end following hotter-than-expected inflation data released last week.
Investors are now turning attention toward several major corporate earnings reports expected later this week, including results from Nvidia and Walmart.
Nvidia’s earnings are particularly important for markets following the massive rally in AI-related semiconductor stocks this year, while Walmart’s results may provide further insight into how consumers are handling rising fuel prices and broader inflation pressures.
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