Dow Gains Over 200 Points as Nasdaq Slips on Chip Concerns

what happened

U.S. stocks lacked a common direction on Monday. The Dow Jones Industrial Average added more than 200 points, while the Nasdaq Composite moved lower. Stocktwits reported that Micron Technology (MU) and other chipmakers fell as investors assessed the threat from China’s CXMT. Oil’s advance, linked to renewed Russia-Ukraine tensions, added another source of pressure.

At the time of writing, SPY was down 0.04%, DIA was up 0.40%, and QQQ had slipped as much as 0.60%. Stocktwits said retail sentiment toward QQQ had eased over the previous day, moving from “extremely bullish” to “bullish.” Salesforce (CRM) helped the Dow after Bank of America raised its rating two steps, from “Underperform” to “Buy,” and lifted its price target from $160 to $285. The bank pointed to better prospects for Salesforce’s AI strategy.

Semiconductor shares weighed on the Nasdaq. SanDisk (SNDK) was down 5.6% in midday trading, while MU declined by roughly 3%. Wells Fargo also cut Adobe (ADBE) to “Underweight” from “Equal Weight” and reduced its target from $270 to $225. The firm cited weaker organic growth and doubts about the software maker’s ability to meet its full-year objectives.

The S&P 500 was little changed as gains in eBay (EBAY), Meta Platforms (META), and Biogen (BIIB) helped offset declines elsewhere. EBAY climbed as much as 5.5%, reaching a more-than-four-month high after Morgan Stanley made it its preferred internet-sector stock. Cerebras Systems (CBRS) dropped 9.6% following a report last week that OpenAI had selected Nvidia (NVDA) processors instead of Cerebras equipment for a function in its newest AI model. CBRS reached a record low of $147.77, below half its $350 IPO price. November WTI futures rose over 2% to above $93 a barrel, while December Brent gained about 2% to near $107. Investors were also preparing for bank earnings, September inflation data, and Kevin Warsh’s speech in Bangkok at an IMF and World Bank event.

why it matters

Higher crude prices added to the market’s uncertainty. New attacks on energy infrastructure and questions over the Russia-Ukraine energy truce announced by President Donald Trump over the weekend supported oil; Ukrainian President Volodymyr Zelenskyy said Russia had already breached the agreement. USO rose about 2.3%, although Stocktwits showed bearish retail sentiment toward the ETF. Bank results and the September consumer price index may shape expectations for the Federal Reserve’s next policy decision.

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