U.S. stocks closed mixed on Monday as investors returned from the Independence Day holiday with renewed interest in technology and semiconductor shares. The S&P 500 and Nasdaq Composite advanced, while the Dow Jones Industrial Average slipped after briefly crossing the 53,000 threshold for the first time.
The market’s focus remained on semiconductor stocks, Federal Reserve meeting minutes, and the start of second-quarter earnings season. Key names watched by traders included Broadcom, Apple, Microsoft, SpaceX, and SK Hynix.
Chip Stocks Lead Nasdaq and S&P 500 Higher
The Nasdaq Composite gained approximately 1.1%, while the S&P 500 rose 0.5% in morning trading. The Dow Jones Industrial Average fell 0.3% after briefly touching a fresh intraday record above 53,000. This divergence highlighted a split market, with technology stocks leading gains while some blue-chip names lost ground.
Chip stocks rebounded after two weak sessions last week. The Philadelphia SE Semiconductor Index surged more than 4%, and the information technology sector led gains on the S&P 500. The recovery helped lift investor sentiment following recent pressure on AI-linked shares.
Broadcom rose 5.7% after extending its chip supply partnership with Apple through 2031. The deal covers custom chip development and supply, giving investors another reason to return to semiconductor names. Micron Technology, Marvell Technology, Teradyne, Western Digital, and Oracle also gained as AI and data center demand remained in focus.
Meanwhile, SK Hynix prepared to launch a U.S. listing aimed at raising approximately $28 billion. The offering added more attention to the global AI chip trade. The South Korean memory chipmaker has already drawn strong market interest this year, although its shares have also experienced sharp swings.
Investors Watch Fed Minutes and Economic Data
Investors also looked ahead to minutes from the Federal Reserve’s latest policy meeting. The minutes are due Wednesday and will be closely watched after the first meeting led by new Fed Chair Kevin Warsh. Traders have reduced bets on a July rate hike after last week’s cooler jobs report.
According to CME FedWatch data, traders now see a 24% chance of a 25-basis-point rate hike at the July 29 meeting, down from about 30% a week earlier. The shift came as investors judged whether softer labor data could give the Fed more room to wait.
The Institute for Supply Management reported that its services index slipped to 54.0 in June, close to market forecasts. The reading indicated that U.S. services activity continued to grow, though at a slightly slower pace. Prices eased but remained high, while employment moved back into growth territory.
Trade Nation’s senior market analyst, David Morrison, expressed doubt about how much clarity the Fed minutes may offer. “Warsh wants the Fed to concentrate on the data and stick to that and not give any projections,” he said. “So it could be that the minutes don’t really give very much away.”
Earnings Season and Stock Movers Stay in Focus
Second-quarter earnings will become a key test for Wall Street later this week. Delta Air Lines and PepsiCo are among the companies expected to report results. Investors are watching whether corporate updates can support the market after strong gains in the major indexes last week.
Morrison also pointed to uncertainty around the largest technology stocks. “This earnings season is important, given the fact that the Magnificent 7 have had a pretty tough time with things of late,” he said. He added that “just a little bit of good news” could help them resume their rally.
Microsoft shares fell 1.8% after the company announced it would cut about 4,800 jobs, equal to roughly 2.1% of its workforce. The stock’s decline weighed on sentiment around large-cap technology, even as broader tech shares rose.
SpaceX gained as investors prepared for its entry into the Nasdaq 100 on Tuesday. The move is expected to drive buying from funds that track the index. Elsewhere, O’Reilly Automotive dropped after reports indicated the company made a cash offer for Genuine Parts’ auto unit.
Global markets were more muted. European stocks slipped slightly, while Asian markets ended mixed. Japan’s Topix rose, South Korea’s Kospi fell, and Hong Kong’s Hang Seng gained. Oil prices drifted after OPEC+ members agreed to raise output again in August, while U.S. Treasury yields edged lower.
With the second-quarter earnings season beginning and the Federal Reserve minutes due later this week, investors are expected to look for fresh signals on corporate profitability and the future path of U.S. interest rates, which could shape the market’s next move.
