The major US stock indices painted a mixed picture with the Dow industrial average and Russell 2000 posting solid gains, while the S&P 500 finished nearly unchanged and the technology-heavy indices closed lower.
- Dow industrial average rose 263.03 points, or 0.51%, to 52,215.23
- S&P 500 edged up 1.20 points, or 0.02%, to 7,413.17
- Russell 2000 gained 18.04 points, or 0.62%, to 2,948.03
- Nasdaq Composite fell 43.74 points, or 0.18%, to 24,932.08
- Nasdaq 100 declined 89.13 points, or 0.32%, to 28,039.21
The closing results showed a clear rotation away from large-cap technology stocks and toward blue-chip and small-cap shares.
Semiconductor and AI-related shares were among the market’s biggest losers Monday, with investors locking in gains following a strong run and rotating out of some of the sector’s highest-multiple names.
Major decliners included:
- SanDisk (SNDK): -$158.33 (-11.02%)
- Lite-On Technology (LITE): -$51.03 (-6.69%)
- ASM International (ASML): -$101.83 (-5.80%)
- AMD: -$27.00 (-5.17%)
- NVIDIA: -$10.33 (-4.99%)
- Lam Research (LRCX): -$13.60 (-4.46%)
- Coherent (COHR): -$11.08 (-3.92%)
- Applied Materials (AMAT): -$19.36 (-3.61%)
- KLA Corp. (KLAC): -$7.16 (-3.40%)
- Albemarle (ALAB): -$9.06 (-3.11%)
- Marvell Technology (MRVL): -$5.06 (-2.61%)
The selling was broad-based, spanning AI chip designers, semiconductor equipment makers, optical networking, and memory-related companies. With several major technology companies still set to report earnings this week, investors appeared to reduce risk ahead of results, raising the stakes for companies to deliver not only strong earnings but also upbeat guidance to justify elevated valuations. The next few trading sessions could determine whether Monday’s weakness proves to be a healthy bout of profit-taking or the start of a deeper rotation out of the AI and semiconductor sector.
Looking at the Dow winners, buying was concentrated in several Dow components, with industrials, financials, consumer staples, and technology shares leading the advance as investors rotated into select blue-chip names.
- Salesforce (CRM): +$9.89 (+6.04%)
- 3M (MMM): +$5.60 (+3.24%)
- Sherwin-Williams (SHW): +$9.76 (+3.07%)
- American Express (AXP): +$9.22 (+2.83%)
- Coca-Cola (KO): +$1.85 (+2.25%)
On the downside, weakness was led by NVIDIA, while energy, industrial, financial, and healthcare stocks also finished lower, limiting broader gains within the Dow.
- NVIDIA (NVDA): -$10.33 (-4.99%)
- Chevron (CVX): -$4.79 (-2.46%)
- Caterpillar (CAT): -$15.61 (-1.76%)
- Goldman Sachs (GS): -$13.40 (-1.26%)
- UnitedHealth (UNH): -$3.10 (-0.74%)
This article was written by Greg Michalowski at investinglive.com.